A Company Using a Standard Costing System Uses an Actual

question 24

Multiple Choice

A company using a standard costing system uses an actual quantity of 520 direct labour hours at an actual cost of $5.90 per hour. The direct labour hours quantity allowed was 500 hours at a standard cost of $6.00 per hour. What is the cost of direct labour that would appear in work in process inventory?

• A) $3068
• B) $3120
• C) $2950
• D) $3000

---

Definitions:

Cost of Retirement

The expenses associated with an individual's retirement, including savings and investments needed to maintain one's standard of living.

Bonds Plus Interest

The total value of bonds when including the accrued interest up to a specific date.

Retired Bonds

Bonds that have been paid off or redeemed by the issuer before their maturity date.

Bond Sinking Fund

A separate fund established by an issuer of bonds to repay principal on the debt over time, ensuring the bond's eventual maturity is financially manageable.