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The Fime Corporation uses a standard costing system. The following data have been assembled for December: Actual direct labor-hours worked 5,600 hours Standard direct labor

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

Actual direct labor-hours worked 5,600 hours
Standard direct labor rate $ 10 per hour
Labor efficiency variance $ 1,500 Unfavorable

The standard hours allowed for Decembers production is:

Multiple Choice

  • 5,450 hours

  • 5,600 hours

  • 5,750 hours

  • 5,300 hours

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