Answer:
$17.50
Explanation:
Given that,
Direct labor hours = 7,000
Standard cost = $20 per hour
Direct Labor Rate Variance = $17,500 Favorable
(Standard Rate - Actual Rate) × Actual Hours = $17,500 Favorable
(20 - Actual Rate) × 7,000 = $17,500 Favorable
140,000 - 7,000 Actual Rate = $17,500 Favorable
Therefore,
7,000 Actual rate = (140,000 - $17,500)
Actual rate = 122,500 ÷ 7,000
= $17.50
