The Reedy Company uses a standard costing system.The following data are available for November: $\begin{array}{lr}
\text { Actual direct labour hours worked } & 5,800 \text { hours } \
\text { Standard direct labour rate } & \$ 9 \text { per hour } \
\text { Labour rate variance } & \$ 1,160 \text { favourable }
\end{array}$ What was the actual direct labour rate for November?
A) $8.80.
B) $8.90.
C) $9.00
D) $9.20.

Question

Quizplus · Accepted Answer

The labour rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours. Given a favourable variance of $1,160, the actual rate must be lower than the standard rate. Solving: ($9 - Actual Rate) x 5,800 = $1,160, gives an actual rate of $8.80.

The Reedy Company Uses a Standard Costing System What Was the Actual Direct Labour Rate for November? A)

The Reedy Company Uses a Standard Costing System What Was the Actual Direct Labour Rate for November?
A)