The Long Company Makes Tables for Which the Following Standards

question 6

Multiple Choice

The Long Company makes tables for which the following standards have been developed: Production of 200 tables was expected in August,but 220 tables were actually completed.Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the standard direct labor cost for each table produced?

• A)$4.00
• B)$20.00
• C)$48.00
• D)$120.00

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Definitions:

Controlled Entities

These are entities over which another entity (the parent) has control, typically through ownership of more than half of the voting rights or through other mechanisms.

Associates

An entity over which an investor possesses significant influence, typically characterized by owning between 20% and 50% of the voting stock.

Joint Ventures

A partnership where multiple parties combine their assets to achieve a particular goal.

Entity

A legal or business entity that is capable of incurring liabilities and undertaking activities, often used to describe businesses, organizations, or corporations.