The Frosty Company Makes Mugs for Which the Following Standards

question 64

Multiple Choice

The Frosty Company makes mugs for which the following standards have been developed: $$\begin{array} { l l l } & \text { Standard Inputs } & \text { Standard Price } \\& \text { Expected for E ach } & \text { Expected per } \\& \text { Unit of Output } & \text { Unit of Output } \\\text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\\text { Direct labor } & 2.5 \text { hours } & \$ 10 \text { per hour }\end{array}$$ Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. _ is the standard labor cost for each mug produced.

• A) $25
• B) $22.50
• C) $1
• D) $10

---

Definitions:

Extraverted

A personality trait typified by an outgoing, sociable, and energetic disposition, often seeking stimulation and company.

Alcohol Problem

A condition where the consumption of alcohol causes harm to an individual's health, interpersonal relationships, or ability to work.

Correlate

To share a two-way relationship or bond, whereby one element impacts or relies on the other.

Extraversion

A personality trait characterized by an outgoing, energetic, and often sociable disposition, with a high tendency for external stimulation.