Prokp Co.'s records for April disclosed the following data relating to direct labor:Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were:
A) 890.
B) 900.
C) 1,000.
D) 1,100.
E) 1,110.

Question

Prokp Co.'s records for April disclosed the following data relating to direct labor:Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were:
A) 890. 
B) 900. 
C) 1,000. 
D) 1,100. 
E) 1,110.

Quizplus · Accepted Answer

The standard direct labor hours allowed (SQ) can be calculated by multiplying the number of units produced (AQ) by the standard direct labor hours per unit (SP).

In April, Prokp Co. produced 900 units (AQ). The total direct labor hours (AH) for the month were 1,035.

To calculate the standard direct labor hours per unit (SP), divide the total direct labor hours by the number of units produced:

SP = AH / AQ
SP = 1,035 / 900
SP = 1.15

Therefore, the standard direct labor hours allowed (SQ) for units produced in April would be:

SQ = AQ x SP
SQ = 900 x 1.15
SQ = 1,035

Since we are asked for the answer to the nearest whole number, the correct choice is B: 900.

Prokp Co's Records for April Disclosed the Following Data Relating to to Direct