Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $36,000 favorable; direct labor efficiency variance = $60,000 unfavorable. Sheldon allows 5 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standard allowed. What was the actual hourly rate (AP) for direct labor, rounded to nearest dollar

Multiple Choice

$44.

$56.

$50.

$30.

$36.