Question

Batson Company produces Trivets. Based on its master budget, the company should produce 1,000 Trivets each month, working 2,600 direct labor hours. During May, only 900 Trivets were produced. The company worked 2,500 direct labor hours. The standard hours allowed for May production would be:

Answer 1

Answer:

The standard labor hours = $2,340

Explanation:

Standard (Budgeted) production volume = 1000 trivets

Standard direct labor hours = 2,600

This means that:

1000 Trivets = 2,600 hours

∴ 1 Trivet = 2,600 ÷ 1,000 = 2.6 hours

Therefore, standard hours for 1 Trivet = 2.6 hours

Actual production volume in May = 900 units

Since we know the standard labor hours for production of 1 Trivet, the standard hours allowed in May is calculated as follows:

1 Trivet = 2.6 hours

∴ 900 Trivets = 2.6 × 900 = 2,340 hours

∴