Which of the following statements is correct?
A) Budgeted hours and standard hours are always the same.
B) Budgeted hours and standard hours are never the same.
C) Budgeted hours and standard hours will be the same when budgeted production equals actual production.
D) Budgeted hours and standard hours are both related to budgeted production levels.

Question

Quizplus · Accepted Answer

Budgeted hours refer to the estimated number of hours required to produce a budgeted level of output. Standard hours refer to the number of hours it should take to produce one unit of output, based on specified conditions such as normal levels of efficiency and skill. If budgeted production equals actual production, then the budgeted hours and standard hours would be the same.

Which of the Following Statements Is Correct