Alkyl Fliers Company Produces Model Airplanes

Multiple Choice

Alkyl Fliers Company produces model airplanes.During the month of November, it produced 3,000 planes.The actual labor hours were 5 hours per plane.Its standard labor hours are 10 hours per plane.The standard labor rate is $8 per hour.At the end of November, Alkyl Fliers found that it had a favorable labor rate variance of $12,000. What was Alkyl Fliers' actual cost per labor hour?

A) $12.75
B) $7.60
C) $9.50
D) $7.20