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The Long Company Makes Tables for Which the Following Standards

Question 66

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The Long Company makes tables for which the following standards have been developed:  Standard Inputs  Standard Frice  Expected for Each  Expected per  Unit of Output  Unit of Output  Direct materials 12 pounds $4 per pound  Direct labor 4 hours $30 per hour \begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 12 \text { pounds } & \$ 4 \text { per pound } \\\text { Direct labor } & 4 \text { hours } & \$ 30 \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) $120
C) $48
D) $4

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