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ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for each unit of its
ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for each unit of its single product: standard quantity standard price direct materials 6 pounds $7.50 per pound direct labor 3 hours ????? per hour variable overhead 3 hours ????? per hour The following information is available for the month of June: 1. Direct materials were purchased at a total cost of $259,000. 2. 15,000 direct labor hours were worked. 3. The variable overhead cost for the month totaled $88,300. 4. 4,000 units were produced. 5. At June 30, there were 6,000 pounds of direct materials left. 6. The direct material price variance was $49,000 unfavorable. 7. The direct labor rate variance was $26,250 favorable. 8. The total direct labor variance was $12,750 unfavorable. 9. The total variable overhead variance was $24,700 unfavorable. Calculate the actual rate paid per hour to direct labor workers in June.
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