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3 September, 17:22

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

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  1. 3 September, 19:56
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    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
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