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STA Company uses a standard cost system. The following information pertains to direct labor costs for the month of June:
Standard direct labor rate per hour P10.00
Actual direct labor rate per hour P 9.00
Labor rate variance P12,000 favorable
Actual output 2,000 units
Standard hours allowed for actual production 10,000 hours
Problem 1: How many actual labor hours were worked during March for STA Company?
A. 10,000 C. 8,000
B. 12,000 D. 10,500
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