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Problem: Variances - Addy Company
Addy Company's direct labour costs are as follows:Standard direct labour hours 30,000Actual direct labour hours 29,000Direct labour efficiency variance, favourable $4,000
Direct labour rate variance, favourable $5,800Total gross wages $110,200
Required:
a. What was Addy's standard direct labour rate? b. What was Addy's actual direct labour rate