Question

Blue corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. during may 900 units were produced and the company worked 2,400 direct labor-hours. the standard hours allowed for may production would be:

Answer 1

Given:
standard hours: 2,500 dl for 1,000 units
actual hours: 2,400 dl for 900 units

Standard direct labor-hours per unit = 2,500 direct labor-hours ÷ 1,000 units= 2.5 direct labor-hours per unit

Standard hours allowed = 2.5 direct labor hours per unit × 900 units= 2,250 hours

The standard hours allowed for may production would be 2,250 hours.