Question

Batson Company produces Trivets. Based on its master budget, the company should produce 2,500 Trivets each month, working 4,000 direct labor hours. During May, only 2,400 Trivets were produced. The company worked 3,900 direct labor hours. The standard hours allowed for May production would be:

Answer 1

Answer:

3840 hours

Explanation:

Given data:

The number of trivets company should produce = 2,500

Number of hours to  work = 4,000

During may,

The number of trivets produced = 2,400

Direct labor hours = 3,900

now, using the concept of unitary method

2,500 trivets require 4,000 hours

thus,

1 trivets require (4,000 / 2,500) hours

now, the standard hours for 2,400 trivets

or

(4,000 / 2,500) hours × 2,400

or

3840 hours

hence, the standard hours allowed for May production would be = 3840 hours