The manager of the City of Sydney road maintenance shop uses standards to judge performance. Because a

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The manager of the City of Sydney road maintenance shop uses standards to judge performance. Because a clerk mistakenly discarded some labour records, however, the manager has only partial data for April. She knows that the total direct labour flexible-budget variance was $1,855 favourable. Moreover, a recent pay raise produced an unfavourable labour price variance for April of $1,085. The actual hours of input were 1,750 and the standard labour price was $14 per hour. 

1. Find the actual labour rate per hour. 

2. Determine the standard hours allowed for the output achieved.

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Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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