Question

The standard cost for direct labor is $190,000 if the company produces 15,200 units of product....

The standard cost for direct labor is $190,000 if the company produces 15,200 units of product. Actual direct labor cost to produce 15,800 units of product totaled $213,300. What is the standard cost for direct labor at the actual level of production:

a.$190,000

b. $213,300

c. $205,200

d. $197,500

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Answer #1

Standard direct labor cost for 15,200 units = $190,000

Standard direct labor cost per unit = 190,000/15,000

= $12.5

Actual output = 15,800 units

Standard direct labor cost for actual output = Actual output x Standard direct labor cost per unitv

= 15,800 x 12.5

= $197,500

The standard cost for direct labor at the actual level of production = $197,500

Correct option is d.

Kindly comment if you need further assistance.

Thanks‼!            

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