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LLS Inc. produces various lighting products, including lamps and lampshades. The following data pertains to the direct labour costs associated with the production of 3,000

  1. LLS Inc. produces various lighting products, including lamps and lampshades. The following data pertains to the direct labour costs associated with the production of 3,000 lampshades during January:

Actual direct labour costs incurred $14,685

Standard direct labour cost allowed for actual units produced $12,375

Direct labour efficiency variance $3,300 unfavourable

The actual direct labour rate was $2 per hour lower than the budgeted direct labour rate. What was the actual amount of direct labour time used to produce one lampshade in January?

  1. 0.385 hour per unit
  2. 1.1 hours per unit
  3. 0.55 hour per unit
  4. 0.935 hour per unit

0.165 hour per unit

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