Asked by Mahmood Alfayoumi on May 12, 2024
Verified
Piper Corporation's standards call for 8,000 direct labor-hours to produce2,000 units of product. During October the company worked 1,650 direct labor-hours and produced 1,650 units. The standard hours allowed for October would be:
A) 8,000 hours
B) 1,900 hours
C) 6,600 hours
D) 6,350 hours
Standard Hours Allowed
The amount of work time allowed for the completion of a task, against which actual hours are compared for performance analysis.
Direct Labor-Hours
Total time directly invested in the creation of a product or the provision of a service.
- Analyze the data to determine the standard hours allocated for production tasks.
Verified Answer
PA
Paulina AlarconMay 19, 2024
Final Answer :
C
Explanation :
The standard hours allowed for October can be calculated as follows:
Standard hours per unit = 8,000/2,000 = 4
Standard hours for 1,650 units = 4 x 1,650 = 6,600 hours. Therefore, the best choice is C.
Standard hours per unit = 8,000/2,000 = 4
Standard hours for 1,650 units = 4 x 1,650 = 6,600 hours. Therefore, the best choice is C.
Learning Objectives
- Analyze the data to determine the standard hours allocated for production tasks.
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