TB MC Qu. 10-39 Piper Corporation's standards call ...
Piper Corporation’s standards call for 6,650 direct labor-hours to produce 1,900 units of product. During October the company worked 1,600 direct labor-hours and produced 1,600 units. The standard hours allowed for October would be:
Multiple Choice
6,650 hours
1,800 hours
5,600 hours
5,050 hours
Answer: option c. 5,600 hours
Calculation of Standard hours allowed for october is as follows:
Standard hours allowed for october= Actual Production * Standard hours required for per unit
= 1,600 units * 3.5 hours
= 5,600 hours
Thus, the standard hours allowed for October is 5,600 hours (option c. 5,600 hours)
Working Note:
Standard hours required for per unit = Standard hours at budegetd production / Budgeted Production
= 6,650 hours / 1,900 units
= 3.5 hours
Thus, Standard hours required for per unit is 3.5 hours.
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