During November, 10,000 direct labour hours were worked at a standard cost of $10 per hour. Suppose the direct labour rate variance for November was $4,000 unfavourable. What was the actual cost per direct labour hour?
A) $9.20
B) $9.60
C) $10.00
D) $10.40

Question

Quizplus · Accepted Answer

Direct labour rate variance = (Actual rate - Standard rate) x Actual hours
$4,000 unfavorable = (Actual rate - $10) x 10,000
Actual rate = ($4,000/10,000) + $10
Actual rate = $0.40 + $10
Actual rate = $10.40
Therefore, the actual cost per direct labour hour is $10.40. The correct answer is D.

During November, 10,000 Direct Labour Hours Were Worked at a Standard