The standard number of hours that should have been worked for the output attained is 10,000 direct labor hours and the actual number of direct labor hours worked was 10,500 if the direct labor price variance was 10,500 favorable and the standard rate of pay was 16 per direct labor hour the actual rate of pay for direct labor would be ______ per direct labor hour (nearest whole number)
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The standard number of hours that should have been worked for the output
attained is 10,000 direct labor hours and the actual number of direct labor hours
worked was 10,500 if the direct labor price variance was 10,500 favorable and
the standard rate of pay was 16 per direct labor hour the actual rate of pay for
direct labor would be ______ per direct labor hour (nearest whole number)
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