Question

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows:

Standard Hours Standard Rate per Hour Standard Cost
27 minutes $6.20 $2.79
During August, 9,395 hours of direct labor time were needed to make 19,300 units of the Jogging Mate. The direct labor cost totaled $57,310 for the month.

Required:

What is the standard labor-hours allowed (SH) to makes 19,300 Jogging Mates?

Answer 1

The standard labor-hours allowed for the production of 19,300 Jogging Mates is 8,685 hours, calculated by multiplying 19,300 units by the standard of 0.45 hours per unit.

Step-by-step explanation:

The student has asked to calculate the standard labor hours allowed to make 19,300 Jogging Mates. The standard set by Erie Company is 27 minutes or 0.45 hours per unit. To find the standard labor-hours allowed (SH), we multiply the number of units by the standard hours per unit. Thus, the calculation is 19,300 units × 0.45 hours/unit = 8,685 standard labor-hours allowed for the manufacture of 19,300 Jogging Mates.