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:
A) 2,500 hours.
B) 2,400 hours.
C) 2,250 hours.
D) 1,800 hours.

Question

Quizplus · Accepted Answer

The standard hours allowed are calculated based on the actual production. If 1,000 Trivets require 2,500 hours, then 900 Trivets would require (900/1000) * 2500 = 2,250 hours.

Batson Company Produces Trivets