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19 June, 05:19

Blue Corporation's standards call for 8,000 direct labor-hours to produce 2,000 units of product. During May 1,650 units were produced and the company worked 1,900 direct labor-hours. The standard hours allowed for May production would be:

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  1. 19 June, 07:57
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    6,600 hours

    Explanation:

    For computing the standard hours allowed, first we have to compute the hours per unit which is shown below:

    Hours per unit = Produced direct labor-hours : Number of units produced

    = 8,000 : 2,000 units

    = 4

    And, the 1,650 units were produced

    So, the standard hours allowed would be

    = 1,650 units * 4

    = 6,600 hours
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