Data on Gantry Company's direct labor costs are given below:Standard direct labor-hoursActual direct labor-hoursDirect labor efficiency variance-favorableDirect labor rate variance-favorableTotal direct labor payrollWhat was Gantry's actual direct labor rate?35,00034,000$ 4,100$ 6,800$ 132,600Multiple Choice$4.10$3.70$3.90$6.80 ### Gantry Company's Direct Labor CostsBelow are the data regarding the direct labor costs for Gantry Company:- **Standard Direct Labor-Hours:** 35,000- **Actual Direct Labor-Hours:** 34,000- **Direct Labor Efficiency Variance (Favorable):** $4,100- **Direct Labor Rate Variance (Favorable):** $6,800- **Total Direct Labor Payroll:** $132,600**Question:**What was Gantry's actual direct labor rate?**Multiple Choice Options:**- $4.10- $3.70- $3.90- $6.80---For students examining cost variances, the above figures illustrate differences between projected and actual labor usage and the financial impact of these variances. The efficiency and rate variances show favorable cost-saving scenarios. To find the actual direct labor rate, use these figures to determine the impact of variances on total payroll.

Name: Data on Gantry Company's direct labor costs are given below:Standard d
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Data on Gantry Company's direct labor costs are given below:Standard direct labor-hoursActual direct labor-hoursDirect labor efficiency variance-favorableDirect labor rate variance-favorableTotal direct labor payrollWhat was Gantry's actual direct la

Direct Labor Variance Is The Difference Between The Standard Hours Less Actual Hours.Direct Labor Efficiency Variance = (Standard Direct Labor Hours - Actual Direct Labor Hours) X Standard Direct Labor Rate Direct Labor Rate Variance = (Standard Direct Labor Rate - Actual Direct Labor Rate) X Actual Direct Labor HoursCalculation Of The Standard Direct Labor Rate -Direct Labor Efficiency Variance = (Standard Hours - Actual Hours) X Standard Rate 4,100 = (35,000 Hours - 34,000 Hours) X Standard Rate Standard Rate = ($4,100 / 1,000) Standard rate = $4.10Calculation Of The Actual Direct Labor Rate -Direct Labor Rate Variance = (Standard Rate - Actual Rate) X Actual Hours $6,800 = ($4.10 - Actual Rate) X 34,000 Hours $6,800 / 34,000 = ($4.10 - Actual Rate) $0.20 = $4.10 - Actual Rate Actual Rate = $4.10 - 0.20 Actual Rate = $3.90 Calcuation Of The Gantry's Actual Direct Labor Rate -Actual Direct Labor Rate = $3.90Hence The Correct Option Is $3.90