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Company L manufactures guitars. At the beginning of 2019, they budgeted for the following -5 direct...

Company L manufactures guitars. At the beginning of 2019, they budgeted for the following

-5 direct labor hours per guitar

-$24 per direct labor hour

-3,000 guitars produced and sold

Company L invested in new guitar machines in 2019 that allowed much of the labor to be done by less experienced workers. This resulted in a favorable rate variance of $63,000. Assume company L was accurate in their production and sales goals and that the guitar machine also allowed company L to use only 4 hours of direct labor for guitar.

What was the actual labor rate per direct labor hour on average, for 2019?

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