Ace Manufacturing Uses a Standard Costing System

question 138

Multiple Choice

Ace Manufacturing uses a standard costing system. What amount is debited to the Work in Process Inventory when labor is incurred in production?

• A) Actual labor hours used times the standard rate per hour
• B) Actual labor hours used times the actual rate per hour
• C) Standard labor hours used times the actual rate per hour
• D) Standard labor hours used times the standard rate per hour

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