Blue Corporation\'s standards call for 5,400 direct labor-hours to produce 1,800

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

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