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:

Profit Center

A profit center is a branch or division of a company that is responsible for generating its own revenue and profit, evaluated independently.

Financial Statements

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Income Statement

A financial report that shows a company's revenues, expenses, and net profit or loss over a specific period.

Balance Sheet

A document which condenses the details of a corporation's assets, liabilities, and owners' equity at a certain moment, offering a glimpse into its financial health.