The standard number of hours that should have been worked for the output attained is 10000 direct labor hours and the actual number of direct labor hours worked was 10500. If the direct labor price variance was $10500 unfavorable and the standard rate of pay was $12 per direct labor hour what was the actual rate of pay for direct labor?

A) $11 per direct labor hour
B) $9 per direct labor hour
C) $13 per direct labor hour
D) $12 per direct labor hour

Direct Labor Price Variance

A measure used in managerial accounting to calculate the difference between the actual cost of direct labor and the expected (or standard) cost, affecting the overall cost of production.

Standard Rate

The predetermined cost or price utilized in budgeting and costing exercises, aimed at simplifying accounting practices or performance evaluations.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.