5)

The standard cost of direct labor per hour is $12.50. One and one half standard direct labor hours are allowed per unit of finished goods. During the current period, 560 units were produced using 1,259 direct labor hours. The direct labor rate variance is $1,000 unfavorable. Calculate the actual cost of direct labor per hour.

A) $18.75

B) $12.50

C) $13.30

D) $32.80