Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 67,500 Standard direct labor hours allowed (SQ) 72,000 Total payroll for direct labor$1,080,000 Direct labor efficiency variance$66,600 The standard direct labor rate per hour (SP) for February (rounded to two decimal places) was: Multiple Choice $14.80. $16.00. $18.20. $17.20. $15.00.

The answer for the multiple choice question and relevant working are presented hereunder: Actual…

Answered: The standard direct labor rate per hour…

Business

Accounting

The standard direct labor rate per hour (SP) for February (rounded to two decimal places) was:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Lucky Company's direct labor information for the month of February is as follows:


Actual direct labor hours worked (AQ)		67,500
Standard direct labor hours allowed (SQ)		72,000
Total payroll for direct labor	$	1,080,000
Direct labor efficiency variance	$	66,600

The standard direct labor rate per hour (SP) for February (rounded to two decimal places) was:

Multiple Choice

$14.80.
$16.00.
$18.20.
$17.20.
$15.00.

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