Ewing Corporation's Controller Has Developed the Cost and Usage Data

question 93

Multiple Choice

Ewing Corporation's controller has developed the cost and usage data listed below in preparation of standard unit cost information for the coming year. $\begin{array}{lr} \text { Direct materials quantity standard } & 3 \text { pounds per product } \\\text { Direct labor time standard } & 5 \text { hours per product } \\\text { Direct materials price standard } & \$ 10 \text { per pound } \\\text { Direct labor rate standard } & \$ 9 \text { per hour } \\\text { Standard variable overhead rate } & \$ 5 \text { per labor hour } \\\text { Standard fixed overhead rate } & \$ 10 \text { per labor hour }\end{array}$
The standard unit cost for direct labor is

• A) $45.
• B) $27.
• C) $135.
• D) $9.

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Definitions:

ASPE

Accounting Standards for Private Enterprises, a set of accounting guidelines for private companies in Canada.

Property, Plant, and Equipment

Long-term assets vital to business operations and not easily converted into cash, encompassing real estate, factories, machinery, and more.

Buildings

Assets classified in accounting as long-term or fixed assets, representing structures owned by a company for business use.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.