COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The standard number of hours that should have been worked for the output attained is 6, 000 direct labor hours and the actual number of direct labor hours worked was 6, 300. If the direct labor rate variance was RM3, 150 unfavorable, and the standard rate of pay was RM9 per direct labor hour, what was the actual rate of direct labor?
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RM7.50 per direct labor hour
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RM8.50 per direct labor hour
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RM9.00 per direct labor hour
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RM9.50 per direct labor hour
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Explanation:
Detailed explanation-1: -The standard number of hours that should have been worked for the output attained is 6, 000 direct labor hours and the actual number of direct labor hours worked was 6, 300.
Detailed explanation-2: -The per-unit standards for direct labor are 2 direct labor hours at $15 per hour.
Detailed explanation-3: -Labour Rate Variance (LRV) It is the difference between the standard and the actual direct Labour Rate per hour for the total hours worked.
Detailed explanation-4: -The formula for this variance is:(standard hours allowed for production – actual hours taken) × standard rate per direct labour hour. (standard hours allowed for production – actual hours taken) × standard rate per direct labour hour.
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