Question

Batson Company produces Trivets. Based on its master budget, the company should produce 1,000 Trivets each month, working 2,500 direct labor hours. During May, only 900 Trivets were produced. The company worked 2,400 direct labor hours. The standard hours allowed for May production would be: Group of answer choices

Answer 1

Answer:

The standard hours allowed for May production would be 2,250 hours

Explanation:

In order to calculate the standard hours allowed for May production we would have to calculate the following formula:

Standard Hours allowed = actual Units / Budgeted units * Budgeted Labour Hours

actual Units=900

Budgeted units=1,000

Budgeted Labour Hours=2,5000 hours

Therefore, Standard Hours allowed =900/1,000 * 2,500 = 2,250 Hours

Standard Hours allowed = 2,250 Hours

The standard hours allowed for May production would be 2,250 hours