Question
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 5 pounds $7.50 per pound
direct labor 3 hours ????? per hour
variable overhead 3 hours ????? per hour
fixed overhead 3 hours $9.30 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 $88,900.
4. 4,000 units were produced.
5. The fixed overhead for the month totaled $96,250.
6. At June 30, there were 6,000 pounds of direct materials left.
7. The direct material price variance was $49,000 unfavorable.
8. The direct labor rate variance was $22,650 favorable.
9. The total direct labor variance was $12,750 unfavorable.
10. The total variable overhead variance was $24,700 unfavorable.
11. The fixed overhead spending variance was $6,050 favorable.
Calculate the actual rate paid per hour to direct labor workers in June.
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