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15 November, 18:30

Batson Company produces Trivets. Based on its master budget, the company should produce 2,500 Trivets each month, working 4,000 direct labor hours. During May, only 2,400 Trivets were produced. The company worked 3,900 direct labor hours. The standard hours allowed for May production would be:

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  1. 15 November, 18:59
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    3840 hours

    Explanation:

    Given dа ta:

    The number of trivets company should produce = 2,500

    Number of hours to work = 4,000

    During may,

    The number of trivets produced = 2,400

    Direct labor hours = 3,900

    now, using the concept of unitary method

    2,500 trivets require 4,000 hours

    thus,

    1 trivets require (4,000 / 2,500) hours

    now, the standard hours for 2,400 trivets

    or

    (4,000 / 2,500) hours * 2,400

    or

    3840 hours

    hence, the standard hours allowed for May production would be = 3840 hours
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