Standard Labor Rate Is $7

question 113

Multiple Choice

Standard labor rate is $7.50 per hour. Standard labor allowed per unit is 0.7 hours. Actual cost per labor hour is $7.00 and actual labour hour per unit is 1 hours. What is the standard labor cost per output unit?

• A) $4.90
• B) $5.25
• C) $7.50
• D) $7.00

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Definitions:

Management

The process of directing and controlling a group of people or an organization to achieve a goal.

Federal Income Tax

The charge imposed by the U.S. government on the yearly income of individuals, businesses, trusts, and other legal bodies.

FICA-OASDI

The Federal Insurance Contributions Act's component for Old-Age, Survivors, and Disability Insurance, a payroll tax that funds Social Security.