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Direct labor standards at ceda manufacturing corporation

Question - Direct labor standards at Ceda Manufacturing Corporation allow 5 direct labor hours for every unit produced. The standard direct labor rate is $12.00 per hour. During the month of February, Ceda incurred 35,000 direct labor-hours and recorded a $15,000 favorable labor variance. How many units did Ceda produce during February?

A) $6,750

B) $7,250

C) $33,750

D) $36,250

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Accounting Basics: Direct labor standards at ceda manufacturing corporation

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