Standard Labor Rate Is $7

question 113

Multiple Choice

Standard labor rate is $7.50 per hour. Standard labor allowed per unit is 0.7 hours. Actual cost per labor hour is $7.00 and actual labour hour per unit is 1 hours. What is the standard labor cost per output unit?

• A) $4.90
• B) $5.25
• C) $7.50
• D) $7.00

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Definitions:

Taxable Gain

The profit that is subject to taxation, realized from the sale of assets or investments.

FMV

Fair Market Value; an estimate of the market value of an asset, based on what a willing buyer would pay to a willing seller.

Subchapter S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, offering the benefits of limited liability of a corporation but is taxed as a pass-through entity.

Taxed

Subject to taxation by governmental authority, involving the imposition of financial charges on individual or corporate income, property, goods, services, or transactions.