A company using a standard costing system uses an actual quantity of 520 direct labour hours at an actual cost of $5.90 per hour. The direct labour hours quantity allowed was 500 hours at a standard cost of $6.00 per hour. What is the cost of direct labour that would appear in work in process inventory?
A) $3068
B) $3120
C) $2950
D) $3000

Question

Quizplus · Accepted Answer

The cost of direct labour that would appear in work in process inventory is calculated using the standard cost and the standard quantity allowed. Therefore, it is 500 hours * $6.00 per hour = $3000.

A Company Using a Standard Costing System Uses an Actual