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

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