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14 March, 12:07

Piper Corporation's standards call for 6,000 direct labor-hours to produce 1,500 units of product. During October the company worked 1,350 direct labor-hours and produced 1,350 units. The standard hours allowed for October would be:

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  1. 14 March, 13:51
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    The standard hours allowed for October would be 5,400 hours

    Explanation:

    For computing the standard hours allowed for the October month, first, we have to compute the standard per hour unit which is shown below:

    = Standard direct labor : Number of units to be produced

    = 6,000 : 1,500

    = $4

    Now, in October month, the direct labor worked for the 1,350 hours and the standard price per unit is $4, So standard hours allowed is

    = October direct labor hours * standard price per unit

    = 1,350 hours * $4

    = $5,400 hours
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