Flexer Company Ltd Has Set the Following Standards for the Production

question 31

Multiple Choice

Flexer Company Ltd has set the following standards for the production of one unit of product.Normal production each month is 500 units.During June,actual production amounted to 420 units.All direct material was purchased and used this month.Actual cost amounted to:
Determine the standard direct labour hours allowed for June production.

• A) 2000 hours
• B) 1720 hours
• C) 420 hours
• D) 1680 hours

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Definitions:

Finished Goods Inventory

Items that are fully manufactured, prepared for sale, and available for customers to buy.

Work in Process Inventory

Items or materials that are partially completed in the production process, representing a company's unfinished goods.

Direct Materials

Raw materials that can be directly identified with the production of finished goods in a manufacturing process.

Direct Labor

Direct labor refers to the wages paid to workers directly involved in the production of goods or the delivery of services.