Blue Company produces Trivets. Based on its master budget, the company should pr
ID: 2483969 • Letter: B
Question
Blue Company produces Trivets. Based on its master budget, the company should produce 9,000 Trivets each month, working 10,500 direct labor hours. During May, only 8,900 Trivets were produced. The company worked 3,200 direct labor hours. The standard hours allowed for May production would be: (Round your final answer to the nearest whole number.)
10,383 hours.
3,236 hours.
3,200 hours.
10,500 hours.
Blue Company produces Trivets. Based on its master budget, the company should produce 9,000 Trivets each month, working 10,500 direct labor hours. During May, only 8,900 Trivets were produced. The company worked 3,200 direct labor hours. The standard hours allowed for May production would be: (Round your final answer to the nearest whole number.)
Explanation / Answer
Production each month 9000 Trivets Working Direct Labor Hours 10500 Actual Production 8900 Trivets Labour Hours 3200 Standards Hours Standard hour per unit 10500/9000 1.166667 Standard Hours allowed 8900*1.6667 10383 Hours The correct option is A. 10383 Hours