The standard labor rate is $8 per hour. Standard labor allowed per unit is 0.6 hours. The actual cost per labor hour is $7.5 and the actual labor hour per unit is 0.7 hours. What is the standard labor cost per output unit? a. $4.8 b. $5.6 C. $4.5 d. $5.25

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 9DQ: Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per...
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The standard labor rate is $8 per hour. Standard labor
allowed per unit is 0.6 hours. The actual cost per labor
hour is $7.5 and the actual labor hour per unit is 0.7
hours.
What is the standard labor cost per output unit?
a. $4.8
b. $5.6
C. $4.5
d. $5.25
Transcribed Image Text:The standard labor rate is $8 per hour. Standard labor allowed per unit is 0.6 hours. The actual cost per labor hour is $7.5 and the actual labor hour per unit is 0.7 hours. What is the standard labor cost per output unit? a. $4.8 b. $5.6 C. $4.5 d. $5.25
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