The Direct Labor Costs for Boundary Company Follow: What

question 71

Multiple Choice

The direct labor costs for Boundary Company follow: What was Boundary's standard direct labor rate?

• A)$ 11.95
• B)$ 11.49
• C)$ 11.60
• D)$ 12.00

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Definitions:

Standard Cost System

A cost accounting system that utilizes standard costs for material, labor, and overhead to estimate the cost of goods produced or services rendered.

Variable Overhead Rate Variance

This refers to the difference between what the variable overhead costs were expected to be versus what they actually were, measured against the standard cost of production.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and quality control.

Standard Costing System

An accounting method that uses standard costs for product cost planning and control, involving setting predetermined costs for manufacturing activities.