Blue Corporation\'s standards call for 5,400 direct labor-hours to produce 1,800
ID: 2464457 • Letter: B
Question
Blue Corporation's standards call for 5,400 direct labor-hours to produce 1,800 units of product. During May 1,550 units were produced and the company worked 1,700 direct labor-hours. The standard hours allowed for May production would be:
A.4,650 hours
B.1,700 hours
C.5,400 hours
D.3,850 hours
Blue Corporation's standards call for 5,400 direct labor-hours to produce 1,800 units of product. During May 1,550 units were produced and the company worked 1,700 direct labor-hours. The standard hours allowed for May production would be:
Explanation / Answer
standard labor hour rate for 1 unit of product = 5400/1800 = 3 hour per unit
Units produced in May 1550 units
standard hours for production of 1550 unit = 1550 *3 = 4650 hours