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

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Definitions:

Distributive Justice

A concept in social science and philosophy regarding the fair distribution of resources and benefits among members of a society.

Procedural Justice

The fairness of the processes used to make decisions, particularly in terms of how individuals believe they are treated by authorities or organizations during those processes.

Voluntary Sabbaticals

Planned, extended leaves of absence from work, initiated by the employee, often for personal growth, travel, or study.

Reducing Overtime

Implementing strategies to decrease the need for employees to work beyond their scheduled hours.