Newtowne Bakery bakes fresh pies that are very popular with the local residents. For July, Newtowne Bakery budgeted 750 direct labor hours to produce 500 pies. In July, Newtowne Bakery actually produced 520 pies and actually used 800 direct labor hours. The standard hours allowed during July would have been closest to

Question

Quizplus · Accepted Answer

To calculate the standard direct labor hours allowed, we can use the formula:
Standard direct labor hours allowed = Budgeted direct labor hours for actual output

Therefore, the standard direct labor hours allowed for 520 pies would be: 
Standard direct labor hours allowed = (750/500) x 520 = 780

Therefore, the closest option to the standard direct labor hours allowed would be C) 780.

Newtowne Bakery Bakes Fresh Pies That Are Very Popular with the Local