Question

Standard direct-labor hours 50,000 Actual direct-labor hours 49,000 Direct-labor efficiency variance-favorable $ 5,200 Direct-labor rate variance-favorable $ 9,800 Total direct labor payroll $ 245,000 What was Gantry's standard direct-labor rate?

Answer 1

$5.20 = Standard Rate of Labor Rate per hour.

Step-by-step explanation:

Provided that,

Standard Direct Labor Hours = 50,000

Actual Direct Labor Hours = 49,000

`Direct \ Labor\ Efficiency\ Variance = (Standard\ Hours - Actual\ Hours) * Standard\ Rate` = $5,200 Favorable

Here, putting values in above

$5,200 = (50,000 - 49,000)
`*` Standard Rate

$5,200 = 1,000
`*` Standard Rate

$5.20 = Standard Rate of Labor Rate per hour.