In a Certain Standard Costing System the Following Results Occurred

question 52

Multiple Choice

In a certain standard costing system the following results occurred last period: labor rate variance, $1,000 U; labor efficiency variance, $2,800 F; and the actual labor rate was $0.20 more per hour than the standard labor rate. The number of actual direct labor-hours used last period was:

• A) 9,000
• B) 5,400
• C) 5,000
• D) 4,800

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Definitions:

Net Income

After deducting taxes and expenses from its revenues, the resultant profit of a company.

Dividends

Cash payouts from a firm to its equity holders, usually derived from the company's financial gains.

Common Stock

Shares entitling the holder to dividends that fluctuate in amount and the right to vote on the company's policy and corporate decisions.