Piper Corporation's standards call for 8,000 direct labor-hours to produce2,000 units of product. During October the company worked 1,650 direct labor-hours and produced 1,650 units. The standard hours allowed for October would be:
A) 8,000 hours
B) 1,900 hours
C) 6,600 hours
D) 6,350 hours

Question

Quizplus · Accepted Answer

The standard hours allowed for October can be calculated as follows:
Standard hours per unit = 8,000/2,000 = 4
Standard hours for 1,650 units = 4 x 1,650 = 6,600 hours. Therefore, the best choice is C.

Piper Corporation's Standards Call for 8,000 Direct Labor-Hours to Produce2,000