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EA8. LO 8.3Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520. What was the standard cost per hour

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Answer:

Standard cost per hour= $3.75 per hour

Explanation:

Giving the following information:

It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000.

We need to determine the standard cost per hour.

Number of hours= 12,000*24,000

Standard cost per hour= 90,000/24,000= $3.75 per hour

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