The standard direct labor per-unit cost is equal to:
A) Standard hours × Standard wage rate
B) Expected hours × Standard wage rate
C) Actual hours × Expected wage rate
D) Expected hours × Actual wage rate
E) None of the above

Question

Quizplus · Accepted Answer

The standard direct labor per-unit cost is calculated by multiplying the standard hours (the estimated time it should take to produce one unit of product) by the standard wage rate (the estimated cost of labor per hour). This provides a budgeted or standard cost against which actual performance can be measured.

The Standard Direct Labor Per-Unit Cost Is Equal To