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

question 74

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. $\begin{array}{|l|l|}\hline \text { Direct materials quantity standard } & 3 \text { pounds per prochuct } \\\hline \text { Direct labor time standard } & 5 \text { hours per product } \\\hline \text { Direct materials price standard } & \$ 10 \text { per pound } \\\hline \text { Direct labor rate standard } & \$ 9 \text { per hour } \\\hline \text { Standard variable overhead rate } & \$ 5 \text { per labor hour } \\\hline \text { Standard fixed overhead rate } & \$ 10 \text { per labor hour } \\\hline \end{array}$
- The standard unit cost for direct labor is

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

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Definitions:

Liquidation

The process of converting assets into cash or cash equivalents by selling them.

Dividends

Awards made by a business to its shareholders, usually resulting from the disbursement of profits.

Voting Rights

The entitlement of shareholders to vote on corporate matters and decisions during stockholders' meetings.

Additional Paid-In Capital

The amount of capital contributed by shareholders above the par value of the shares.