Information on Engstom's direct labor costs for the month of August is as follows:Actual rate$7.50Standard hours11,000Actual hours10,000Direct labor price variance $5,000 UnfavorableWhat was the standard rate for August?A. $6.95B. $7.00C. $8.00D. $8.05

Step 1:Use the Formula for Labor Price VarianceStep 2:Solve for the DifferenceStep 3:Find the…

Answered: Information on Engstom's direct labor…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...

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Information on Engstom's direct labor costs for the month of August is as follows: Actual rate $7.50 Standard hours 11,000 Actual hours 10,000 Direct labor price variance $5,000 Unfavorable What was the standard rate for August? A. $6.95 B. $7.00 C. $8.00 D. $8.05