Kelly Fabrics manufactures a specialty monogrammed blanket. The following are th

Question

Kelly Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket:

Direct Material (Fabric)………………. 4.0 yards per blanket at $7.00 per yard

Direct Labor…………………………… 1 direct labor hour per blanket at $13.00 per hour

Actual results from last month's production of 2,100 blankets are as follows:

Actual Cost of 9,450 yards of direct material (fabric) purchased …………… $ 60,480

Actual yards of direct material (fabric) used ………………………………….   $ 8,900

Actual Wages for 2.250 hours worked ………………………………………..   $ 27,450

What is the actual direct labor cost per hour?

Explanation / Answer

Actual direct labor cost per hour = Total wages/Number of actual hours worked.
Total wages = $27450
Number of actual hours worked = 2250
Actual direct labor cost per hour = $27450/2250 = $12.2 per hour

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