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TB MC Qu. 10-39 Piper Corporation's standards call ... Piper Corporation’s standards call for 6,650 direct...

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

Homework Answers

Answer #1

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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