Question 2

Happinessistheroad Corp. has the following information available regarding its labor:

Managers expected to pay $11 per direct labor hour. Each unit produced should take 1 direct labor hour; actual total usage was 990 direct labor hours. Finally, the company planned to produce 1,000 units, but only produced 950.

The direct labor spending variance is $990 (unfavorable).

How much did the company actually spend on direct labor per hour?

1 point

$11

$12

$11.50

$10.50