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Sterling Cooper Manufacturing Company Is Expected to Complete a Task

Question 98

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Sterling Cooper Manufacturing Company is expected to complete a task in 45 minutes. During a recent accounting period, 2,200 completed units were produced, resulting in the following labour variances:
Labour rate variance: $1,020 favourable
Labour efficiency variance: $2,800 unfavourable
The standard labour rate is $18 per hour.
Required:
Calculate (1) the standard hours allowed for the work performed, (2) the actual hours worked, and (3) the actual wage rate.

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