Assume that company makes only one product and uses a standard costing system. The standard
cost card for that product shows standard direct labor-hours allowed per unit of 0.50 hours. The
standard direct labor pay rate is $16 per hour. While the company's budgeted level of production
per period is 19,000 units, in a recent period, the company actually produced 20,000 units. During
this period the company actually worked 10,500 direct labor-hours and paid its direct laborers
$16.50 per hour. Based on this information, the total increase recorded in the Work in Process
account with respect to direct labor would be:
Multiple Choice
$160,000.
$165,000.
$168,000
$173,250.