The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However, its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.
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What is Perfect's standard hours allowed for a volume of 80,000 blades?
A) 210,000 hours
B) 189,000 hours
C) 115,000 hours
D) 125,000 hours
Correct Answer:
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