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:

Gulf War

A conflict in the early 1990s between Iraq and a coalition of countries led by the United States, following Iraq's invasion of Kuwait.

Eyewitness

A person who directly observes an event and can provide testimony or information about it.

Biased

A tendency to favor or lean towards a particular perspective, conclusion, or response, often in a way that is considered to be unfair or biased against other options.

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Accessing a resource or obtaining information from a specific source; also refers to gently striking something.