Question

Blue Corporation's standards call for 8,000 direct labor-hours to produce 2,000 units of product. During May 1,650 units were produced and the company worked 1,900 direct labor-hours. The standard hours allowed for May production would be:

Answer 1

Answer:

6,600 hours

Explanation:

For computing the standard hours allowed, first we have to compute the hours per unit which is shown below:

Hours per unit = Produced direct labor-hours ÷ Number of units produced

                        = 8,000 ÷ 2,000 units

                        = 4

And, the 1,650 units were produced

So, the standard hours allowed would be

= 1,650 units × 4

= 6,600 hours