Europa Company Manufactures Only One Product The Total Standard Direct Labor Hours (SQ) in November for Labor

question 93

Multiple Choice

Europa Company manufactures only one product. Presented below is direct labor information for November. $\begin{array}{lr}\text { Standard direct labor hours per unit of product } & 3.20 \\\text { Number of finished units produced } & 6,500 \\\text { Standard wage rate per direct labor hour (SP) } & \$ 19.20 \\\text { Total direct labor pavroll for the period } & \$ 359.424\\\text { Actual wage rate per direct labor hour worked (AP) }&\$16.00\end{array}$ The total standard direct labor hours (SQ) in November for the output produced, rounded to the nearest whole number, was:

• A) 18,720.
• B) 19,200.
• C) 20,800.
• D) 22,400.
• E) 22,464.

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Definitions:

Time Value of Money

The principle that a certain amount of money today is worth more than the same amount in the future due to its potential earning capacity.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and risk.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Accumulated

The total gathered or collected amount over a period of time, referring to various contexts such as finances, data, or materials.