Exhibit 10-2 Benny's Bakery Produces Bagels for Resale at Local Grocery Stores.The

question 15

Multiple Choice

Exhibit 10-2
Benny's Bakery produces bagels for resale at local grocery stores.The master budget indicates that the company expects to use 2.5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of bagels) .Each unit produced will require 0.30 direct labor hours at a cost of $24.00 per hour.Variable manufacturing overhead is applied based on direct labor hours at a rate of $4.80 per hour.Last year's sales were expected to total 40,000 units.Benny just received last year's actual results showing sales of 35,000 units.
-Refer to Exhibit 10-2.What is the standard cost per unit for direct labor?

• A)$80.00
• B)$5.00
• C)$24.00
• D)$7.20
• E)None of the answer choices is correct.

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Definitions:

Early 17th Century

A period roughly between the years 1601 to 1630, marked by significant cultural, political, and technological changes worldwide.

Indians in the Northeast

Indigenous peoples living in the northeastern part of North America, known for their rich cultures, languages, and traditions, and for forming vital societies long before European colonization.

European Colonization

The process by which European countries established control over territories across the world, starting in the late 15th century.

Adaptation

The process of changing or modifying something to better suit a new environment or purpose, often used in biological and cultural contexts.