connect 23-2

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $16.30 per hour for the labor rate. During October, the company uses 13,200 hours of direct labor at a $217,800 total cost to produce 6,900 units of product. In November, the company uses 23,300 hours of direct labor at a $386,780 total cost to produce 7,300 units of product.