Answer:
The correct answer is $13 per direct labor hour
Explanation:
Giving the following information:
Actual hours= 10,500.
Direct labor price variance= $10,500 unfavorable
Standard rate= $12 per direct labor hour
We need to use the direct labor rate variance formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
-10,500= (12 - actual rate)*10,500
-10,500= 126,000 - 10,500actual rate
-136,500/-10,500= actual rate
13= actual rate
$13 per direct labor hour
