The Vito Company makes tables for which the following standards have been developed: $$\begin{array} { l l l }
& \text { Standard Inputs } & \text { Standard Price } \
& \text { Expected for Each } & \text { Expected per } \
& \text { Unit of Output } & \text { Unit of Output } \
\text { Direct materials } & \text { 10 pounds } & \$ 4 \text { per pound } \
\text { Direct labor } & 4 \text { hours } & \$ 20 \text { per hour }
\end{array}$$ Production of 200 tables was expected in August, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. _ is the standard labor cost for each table produced.
A) $20
B) $72
C) $4
D) $80

Question

The Vito Company makes tables for which the following standards have been developed: $$\begin{array} { l l l } 
& \text { Standard Inputs } & \text { Standard Price } \
& \text { Expected for Each } & \text { Expected per } \
& \text { Unit of Output } & \text { Unit of Output } \
\text { Direct materials } & \text { 10 pounds } & \$ 4 \text { per pound } \
\text { Direct labor } & 4 \text { hours } & \$ 20 \text { per hour }
\end{array}$$ Production of 200 tables was expected in August, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. _ is the standard labor cost for each table produced.
A) $20
B) $72
C) $4
D) $80

Quizplus · Accepted Answer

The standard labor cost for each table is calculated by multiplying the standard hours per table (4 hours) by the standard rate per hour ($20), which equals $80.

The Vito Company Makes Tables for Which the Following Standards