Thyne Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The actual output for the period was 3,900 units.
The standard hours allowed for the actual output is closest to:
A) 3,510 hours
B) 3,092 hours
C) 3,780 hours
D) 3,330 hours

Question

Thyne Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The actual output for the period was 3,900 units.
The standard hours allowed for the actual output is closest to:
A) 3,510 hours 
B) 3,092 hours 
C) 3,780 hours 
D) 3,330 hours

Quizplus · Accepted Answer

SH = 3,900 units × 0.90 hours per unit = 3,510 hours

Thyne Inc Has Provided the Following Data Concerning One of the the Products