The Vito Company Makes Tables for Which the Following Standards

question 21

Multiple Choice

The Vito Company makes tables for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for Each } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & \text { 10 pounds } & \$ 4 \text { per pound } \\\text { Direct labor } & 4 \text { hours } & \$ 20 \text { per hour }\end{array}$$ Production of 200 tables was expected in August, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. _ is the standard labor cost for each table produced.

• A) $20
• B) $72
• C) $4
• D) $80

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Definitions:

Substrate

The surface or material on or from which an organism lives, grows, or obtains its nourishment, or the reactant upon which an enzyme acts.

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A scientific theory suggesting that RNA, rather than DNA, was the first genetic material to evolve in early life forms.

Polypeptides

Chains of amino acids linked by peptide bonds, which can function independently or as part of a protein.

Alexander Cairns-Smith

A scientist known for his "clay hypothesis" proposing that complex organic molecules could have evolved from clay minerals.