Question

The actual direct labor wage rate is $8.50, and 4,500 direct labor hours were actually worked during the month. The standard direct labor wage rate is $8.

A. The standard direct labor wage rate is $8.50.
B. The actual direct labor wage rate is higher than the standard rate.
C. The standard direct labor wage rate is $4.50.
D. The actual direct labor hours worked are lower than the standard.

Answer 1

The actual direct labor wage rate is higher than the standard rate.

Step-by-step explanation:

The given question provides information about the actual and standard direct labor wage rates and the actual direct labor hours worked. From the given information, we can determine the following:

A. The standard direct labor wage rate is $8.50 (False). The standard direct labor wage rate is given as $8.

B. The actual direct labor wage rate is higher than the standard rate (True). The actual direct labor wage rate is given as $8.50, which is higher than the standard rate of $8.

C. The standard direct labor wage rate is $4.50 (False). The standard direct labor wage rate is given as $8.

D. The actual direct labor hours worked are lower than the standard (False). It is not mentioned in the given information whether the actual direct labor hours worked are lower or higher than the standard hours.