Blue Corporation's Standards Call for 2,500 Direct Labor-Hours to Produce

question 106

Multiple Choice

Blue Corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. During May 900 units were produced and the company worked 2,400 direct labor-hours. The standard hours allowed for May production would be:

• A)2,500 hours
• B)2,400 hours
• C)2,250 hours
• D)1,800 hours

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Definitions:

Posting Reference Column

A column in journals or ledgers used to record page numbers or account numbers, facilitating the tracking of transactions.

Ledger

A comprehensive collection of a company's financial accounts, where all transactions are recorded.

Transactions

Acts of buying, selling, transferring, or exchanging goods, services, or funds between two or more parties.