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

question 156

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Lab Corp.uses a standard cost system.Direct labour information for Product CER for the month of October follows:
 Standard direct labour rate $6.00 per hour  Actual direct labour rate paid $6.10 per hour  Standard hours allowed for actual production 1,500 hours  Labour efficiency variance-unfavourable $600\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?


Definitions:

Self-Employment Taxes

Taxes paid by individuals who work for themselves, covering Social Security and Medicare contributions.

Net Earnings

The amount of income left after subtracting all expenses, taxes, and costs from the total revenue.

FUTA Taxes

Federal Unemployment Tax Act taxes are paid by employers to fund the unemployment account of the federal government.

Taxpayer

A taxpayer is any person or entity that is obliged to pay taxes to a federal, state, or local government.

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