TB MC Qu. 10-38 The Fime Corporation uses a standard ...

The Fime Corporation uses a standard costing system. The following data have been assembled for December:

Actual direct labor-hours worked		5,500	hours
Standard direct labor rate	$	10	per hour
Labor efficiency variance	$	1,500	Unfavorable

The standard hours allowed for Decembers production is:

Multiple Choice

• 5,200 hours

• 5,350 hours

• 5,500 hours

• 5,650 hours