Bear Company Uses a Standard Costing System -Refer to the Figure

question 161

Multiple Choice

Bear Company uses a standard costing system. The following information pertains to direct labour costs for the month of March:
$$\begin{array} { l l } \text { Standard direct labour rate per hour } & \$ 15.00 \\\text { Actual direct labour rate per hour } & \$ 13.50 \\\text { Labour rate vari ance } & \$ 18,000 \text { favourable } \\\text { Actual output } & 1,000 \text { units } \\\text { Standard hours allowed for actual production } & 10,000 \text { hours }\end{array}$$
-Refer to the Figure.How many actual labour hours were worked during March for Bear Company?

• A)1,200 hours
• B)2,000 hours
• C)10,000 hours
• D)12,000 hours

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Definitions:

Responsible Person Doctrine

A legal principle that holds an individual personally liable for unpaid taxes or obligations of a business, based on the level of control or authority they have over the financial operations of the entity.

Insider Information

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Par-Value Stock

Shares of a company that have a minimum fixed face value; the value is set at the time the shares are issued.

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A physical document that represents ownership of a certain number of shares in a corporation.