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Simms Limited Had a Favourable Direct-Labour Efficiency Variance of $8,000

Question 86

Multiple Choice

Simms Limited had a favourable direct-labour efficiency variance of $8,000 for the period just ended. The actual wage rate was $0.70 more than the standard rate of $10.00. If the company's standard hours allowed for actual production totalled 10,000, how many hours did the firm actually work?


A) 800.
B) 8,000.
C) 9,200.
D) 10,000.
E) 18,000.

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