The Reedy Company Uses a Standard Costing System

question 36

Multiple Choice

The Reedy Company uses a standard costing system.The following data are available for November:
What was the actual direct labour rate for November?

• A) $8.80.
• B) $8.90.
• C) $9.00
• D) $9.20.

---

Definitions:

Monthly Payments

Regular payments made on a monthly basis towards settling a financial obligation, such as a loan or mortgage.

Effective Annual Rate

The effective annual rate is the interest rate on a financial product restated from the nominal rate as an annual rate that takes into account compounding over a given period.

Nominal Annual Rate

The interest rate stated on a loan or financial product, not accounting for compounding or inflation over time.

Interest Payments

Periodic payments made to lenders or bondholders as compensation for lending their money.