The city of Sydney, Nova Scotia, has a sign shop where street signs of
all kinds are manufactured and repaired. The manager of the shop uses standards
to judge performance. However, because a clerk mistakenly discarded some
labour records, the manager has only partial data for April. She knows that the
total direct labour variance was $1,855 favourable, and that the standard labour
price was $12 per hour. Moreover, a recent pay raise produced an unfavourable
labour price variance for April of $945. The actual hours of input were 1,750.
1. Find the actual labour price per hour.
2. Determine the standard hours allowed for the output achieved.