Lab CorpUses a Standard Cost System What Were the Actual Hours Worked?
A) 1,400 Hours

question 156

Multiple Choice

Lab Corp.uses a standard cost system.Direct labour information for Product CER for the month of October follows:
$\begin{array}{|l|r|}\hline \text { Standard direct labour rate } & \$ 6.00 \text { per hour } \\\hline \text { Actual direct labour rate paid } & \$ 6.10 \text { per hour } \\\hline \text { Standard hours allowed for actual production } & 1,500 \text { hours } \\\hline \text { Labour efficiency variance-unfavourable } & \$ 600 \\\hline\end{array}$
What were the actual hours worked?

• A) 1,400 hours.
• B) 1,402 hours.
• C) 1,598 hours.
• D) 1,600 hours.

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Definitions:

Outside Supplier

An external entity that provides goods or services to another organization.

Selling Price

The amount for which a product or service is sold to the customer.

Special Order

An order that is outside a company's normal production routine, often requiring special pricing, materials, or production scheduling.

Financial Indifferent

A state where different options present the same financial value or outcome, leaving the decision-maker indifferent in financial terms.