Blue Corporation's standards call for 6,650 direct labor-hours to produce 1,900 units of product. During May...

Blue Corporation's standards call for 6,650 direct labor-hours to produce 1,900 units of product. During May 1,600 units were produced and the company worked 1,800 direct labor-hours. The standard hours allowed for May production would be:

1,800 hours

6,650 hours

5,600 hours

5,050 hours

Expert Solution

Solution: The correct option is the 3^rd option i.e 5600 hours

Working Note :Actual units=1600 units

The standards call for 6650 direct labour hours to produce 1900 units of the product

Standard hours allowed for May production would be=The standard hours allowed for actual output

Standard hours allowed for May production would be=1600 units*6650directlabour hours/1900units

=5600 hours

ekkarill92 answered 1 year ago

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