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Data on Gantry Company's Direct Labor Costs Are Given Below

Question 67

Multiple Choice

Data on Gantry Company's direct labor costs are given below:
 Standard direct-labor hours 30,000Actual direct-labor hour’s 29,000 Direct-labor efficiency variance-favorable $4,000 Direct-labor rate variance-favorable $5,800 Total direct labor payroll $110,200\begin{array}{lrr} \text { Standard direct-labor hours } &30,000\\ \text {Actual direct-labor hour's } &29,000\\ \text { Direct-labor efficiency variance-favorable } &\$4,000\\ \text { Direct-labor rate variance-favorable } &\$5,800\\ \text { Total direct labor payroll } &\$110,200\\\end{array}

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What was Gantry's standard direct labor rate?


A) $3.54
B) $3.80
C) $4.00
D) $5.80

Correct Answer:

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