Solved

The Clark Company Makes a Single Product and Uses Standard

Question 165

Multiple Choice

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
 Labour rate variance $7,000 favourable  Labour efficiency variance $12,000 favourable  Variable overhead efficiency variance $4,000 favourable  Number of units produced 10,000 Standard labour rate per direct labour hour $12 Standard variable overhead rate per direct labour hour $4 Actual labour hours used 14,000 Actual variable manufacturing overhead costs $58,290\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}


-What was the actual direct labour rate for May in dollars per hour?


A) $11.50.
B) $11.75.
C) $12.00.
D) $12.50.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions