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10 October, 04:24

Blue Corporation's standards call for 3,900 direct labor-hours to produce 1,300 units of product. During May 900 units were produced and the company worked 1,200 direct labor-hours. The standard hours allowed for May production would be:

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  1. 10 October, 06:06
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    Standard total hours are 2,100 Hrs.

    Explanation:

    The standard hour per unit must be computed to flex it to calculate the standard hours allowed for actual production.

    So

    Standard hour per unit = Standard production / Standard totals hours

    Here

    Standard production = 1,300 units

    Standard total hours = 3900 Labor hours

    By putting the values, we have:

    Standard hour per unit = 3900 / 1300 Units = 3 hours per unit

    Now we want to find total standard hours allowed for 900 units

    So

    Standard hours allowed for 900 units = Standard hour per unit * Production units

    By putting values, we have:

    Standard hours allowed for 900 units = 3 Hrs per unit * 900 units

    Standard hours allowed for 900 units = 2,100 hours
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