Reference no: EM132753147

The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production based on direct labour hours. Some data concerning this product for the month of May follow:

Labour rate variance:$7,000 F

Labour efficiency variance:$12,000 F

Variable overhead efficiency variance:$4,000 F

Number of units produced:10,000

Standard labour rate per direct labour hour:$12

Standard variable overhead rate per direct labour hour:$4

Actual labour hours used:14,000

Actual variable manufacturing overhead costs:$58,290

Problem 1: The standard hours allowed to make one unit of finished product are:

Multiple Choice

Option 1: 1.0.
Option 2: 1.2.
Option 3: 1.5.
Option 4: 2.0.