Information on Skymaster Company’s direct labor costs for the month of January follows: Actual direct labor rate $7.50 Standard direct labor hours allowed 11,000 Actual direct labor hours 10,000 Direct labor rate variance—favorable $5,500 What was the standard hourly direct labor rate in effect for the month of January?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...
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Information on Skymaster Company’s direct labor costs for the month of January follows:

Actual direct labor rate $7.50
Standard direct labor hours allowed 11,000
Actual direct labor hours 10,000
Direct labor rate variance—favorable $5,500

What was the standard hourly direct labor rate in effect for the month of January?

 

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