Question $6(3$ points$)$

Reindeer Radar is a local baker known for their special glittery reindeer food that attracts the reindeer that guide Santa's sleigh to your house. The company is a mom$-$and$-$pop shop and has not kept good records in the past but has recently hired a team of experienced accountants to clean up the books before the Christmas season begins. The company wants to figure out how much it paid its workers last season so it can budget workforce needs for this season. Reindeer Radar has determined that the total direct labor variance in the prior period was a favorable $$4,000$ and that direct laborers were paid $$0\mathrm{.}50$ less per hour than expected. Management expected $0\mathrm{.}4$ direct labor hours to be used to produce a single bad of Reindeer food. The $6,250$ bags of reindeer food produced ended up using $100$ less hours than budgeted. What was the prior period's actual direct labor rate per hour?

$$28\mathrm{.}00$ per direct labor hour

$$27\mathrm{.}50$ per direct labor hour

$$1\mathrm{.}95$ per direct labor hour

$$52\mathrm{.}00$ per direct labor hour

There is not enough information