Vonnie's Bakery manufactures a specialty cake that is very popular with the local residents. For May, Vonnie's Bakery budgeted 800 direct labour hours to produce 400 cakes. In May, Vonnie's Bakery actually produced 450 cakes and actually used 900 direct labour hours. The standard hours allowed during May would have been closest to

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C) Standard price = 800 hrs / 400 cakes = 2 hrs per cake
Std hrs allow = 450 cakes produced × 2 hr per cake = 900

Vonnie's Bakery Manufactures a Specialty Cake That Is Very Popular