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  • 36.

    The standard rate per direct labor-hour should be:

    • a.

      $9.07

    • b.

      $14.00

    • C.

      $18.93

    • d.

      $4.93

  • 37.

    The standard direct labor-hours per unit should be:

    • a.

      0.69

    • b.

      0.56

    • c.

      0.74

    • D.

      0.92

Longview Hospital performs blood tests in its laboratory. The following standards have been set for each blood test performed:

During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is assigned to blood tests on the basis of direct labor hours. The following events occurred during May:

  • 3,600 plates were purchased for $9,540

  • 3,200 plates were used for blood tests

  • 340 actual direct labor hours were worked at a cost of $5,550

Brewer - Chapter 008

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