Reference no: EM132742066

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

FLabour efficiency variance:$12,000

FVariable overhead efficiency variance:$4,000

FNumber 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 total standard cost for direct labour for May was:

Multiple Choice

Option 1: $120,000.
Option 2: $161,000.
Option 3: $168,000.
Option 4: $180,000.