The calculation for the standard direct labor cost is
A)standard wage rate per direct labor hour x actual quantity of direct labor hours.
B)standard wage rate per direct labor hour x standard quantity of direct labor hours.
C)actual wage rate per direct labor hour x standard quantity of direct labor hours.
D)actual wage rate per direct labor hour x actual quantity of direct labor hours.

Question

Quizplus · Accepted Answer

Standard direct labor cost is the cost that should have been incurred for the actual quantity of work done. It is calculated by multiplying the standard wage rate per direct labor hour by the standard quantity of direct labor hours. Option A is incorrect because it uses actual quantity of direct labor hours instead of standard quantity. Option C is incorrect because it uses actual wage rate per direct labor hour instead of standard wage rate. Option D is incorrect because it uses actual wage rate and actual quantity of direct labor hours instead of standard wage rate and standard quantity of direct labor hours.

The Calculation for the Standard Direct Labor Cost Is