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The Fantastic Tool Company (Mexico Division) Produced 100,000 Saw Blades

Question 11

Multiple Choice

The Fantastic Tool Company (Mexico Division) produced 100,000 saw blades during the year. Each saw blade required two hours of labour at a rate of $5.50 per hour. However, the company's standard labour rate is $5.00. Its labour efficiency variance was a favourable $55,000.
-Refer to the Figure.What are Fantastic's standard hours allowed for a volume of 100,000 blades?


A) 189,000 hours
B) 190,000 hours
C) 210,000 hours
D) 211,000 hours

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