Hart Company's labour standards call for 500 direct labour hours to produce 250 units of product.During October,the company worked 625 direct labour hours and produced 300 units.What were the standard hours allowed for October?
A) 250 hours.
B) 500 hours.
C) 600 hours.
D) 625 hours.

Question

Quizplus · Accepted Answer

The standard hours allowed can be calculated based on the actual production. The standard calls for 500 hours for 250 units, so for 1 unit, it requires 2 hours (500 hours / 250 units). For 300 units produced in October, the standard hours allowed would be 300 units * 2 hours/unit = 600 hours.

Hart Company's Labour Standards Call for 500 Direct Labour Hours