Minmax Co.'s direct labor information for February is as follows:

Direct labor hours worked (AQ) 33,600 Standard direct labor hours for units manufactured (SQ) 35,000 Unfavorable direct labor rate variance$11,760 Total payroll for direct labor$470,400

The standard direct labor rate per hour (SP) (to two decimal places) for February was:

$13.65

1. AP = Actual direct labor payroll/actual labor hours worked = (AQ × AP)/AQ = $470,400 (given)/33,600 hours (given) = $14.00/hour

2. Direct labor rate variance = (AP ? SP) × AQ

3. $11,760U (given) = ($14 ? SP) × 33,600 hours

4. SP = $13.65/hour

5. Alternatively, SP = ($470,400 ? $11,760)/33,600 hours = $13.65/hour (rounded to two decimal places)