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30 October, 22:20

Batson Company produces Trivets. Based on its master budget, the company should produce 2,000 Trivets each month, working 4,400 direct labor hours. During May, only 1,900 Trivets were produced. The company worked 4,300 direct labor hours. The standard hours allowed for May production would be:

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  1. 30 October, 22:22
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    the standard for 1,900 units would be 4,180 labor hours

    Explanation:

    From the budget we have the following relationship:

    4,400 direct labor hours t produce 2,000 units

    we divie to get the hours per unit

    4,400 / 2,000 = 2.2 hours per unit

    now we multiply by the amount of units produced

    1,900 x 2.2 = 4,180

    This is the standard labor hours for the actual production.
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