Question

Piper Corporation’s standards call for 1,000 direct labor-hours to produce 250 units of product. During October the company worked 1,250 direct labor-hours and produced 300 units. The standard hours allowed for October would be______________.
a. 1,300 hours
b. 1,250 hours
c. 1,200 hours
d. 1,000 hours

Answer 1

Answer: C. 1200 hour

Explanation:

It is indeed 1200 hours because the units produced increased by 20% and therefore, theoretically, so should the time.