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:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid by borrowers for the use of funds.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its value to buyers and sellers.

Accounting Gain

A financial benefit that results from selling an asset at a price higher than its book value, recognized in the financial statements of a company.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset less any depreciation, amortization, or impairment costs.