Figure 17-4
Shannon Ltd.'s standard cost card contained the following information:
Direct labour: 1.25 hours * £8.00 per hour = £10.00
Shannon planned to make 12,000 units. Shannon actually made 10,000 units using 13,000 hours.
-Refer to Figure 17-4. Shannon's standard hours allowed for production was
A)12,500.
B)15,000.
C)16,250.
D)13,000.

Question

Quizplus · Accepted Answer

The standard hours allowed for production is calculated by multiplying the standard hours per unit by the actual number of units produced. In this case, 1.25 hours per unit * 10,000 units = 12,500 hours.

Figure 17-4 Shannon Ltd.'s Standard Cost Card Contained the Following Information