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Managerial Accounting

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Using Standard Labor Costs for to Produce Plastic Bins

MGRACT-5NLMEM

Lewis Corp manufactures plastic bins. The standard hours allowed to manufacture a plastic bin is 2,500, and the standard wage rate is \$16. The actual labor hours incurred were 2,550 and the cost of labor amounted to \$42,100.

What amount should be debited to Work in Progress to assign the factory labor cost to the job?

A

$40,000.00

B

$2,100.00

C

$42,100.00

D

$40,800.00