Zellner Corporation is developing direct labor standards. A particular product requires 0.94 direct labor-hours per unit. The allowance for breaks and personal needs is 0.02 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.10 direct labor-hours per unit. The standard direct labor-hours per unit should be:
A) 0.82
B) 0.92
C) 0.94
D) 1.06

Question

Quizplus · Accepted Answer

The standard direct labor-hours per unit is calculated by adding the basic direct labor-hours (0.94) with allowances for breaks and personal needs (0.02) and cleanup, machine downtime, and rejects (0.10), totaling 1.06 direct labor-hours per unit.

Zellner Corporation Is Developing Direct Labor Standards