Question

The following information describes a company’s direct labor usage in a recent period. Actual direct labor hours used (AH) 65,000 Actual direct labor rate per hour (AR) $ 15 Standard direct labor rate per hour (SR) $ 14 Standard direct labor hours for units produced (SH) 67,000What is the actual cost?

Answer 1

Answer:

$975,000

Explanation:

Given that,

Actual direct labor hours used (AH) = 65,000

Actual direct labor rate per hour (AR) = $15

Standard direct labor rate per hour (SR) = $14

Standard direct labor hours for units produced (SH) = 67,000

Actual cost = Actual hours × Actual rate

                   = 65,000 × $15

                   = $975,000

Therefore, the actual cost is $975,000.