Montana Company Uses a Standard Costing System

question 109

Multiple Choice

Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: Standard direct labor rate per hour $15.00
Actual direct labor rate per hour $13.50
Labor rate variance $18,000 favorable
Actual output 1,000 units
Standard hours allowed for actual production 10,000 hours
How many actual labor hours were worked during February for Montana Company?

• A) 10,000
• B) 12,000
• C) 1,200
• D) 2,000

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this through vision, influence, and facilitating progress.

Enabling Process

The creation and implementation of processes that empower individuals or teams to achieve their goals effectively.

Solitary Work Activity

Tasks or jobs that are performed alone without interaction or collaboration with others.

Moderate Risk

A level of risk that is considered to be acceptable or manageable, often seen as a compromise between high risk and no risk.