Redwood Industries' standards call for 4,500 direct labor-hours to produce 1,500 units of product. During June, 1,200 units were produced, and the company worked 1,800 direct labor-hours. What would the standard hours allowed for June production be? A. 4,500 hours. B. 1,800 hours. C. 3,600 hours. D. 3,000 hours.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
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Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...
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Redwood Industries' standards call for 4,500 direct labor-hours to produce
1,500 units of product. During June, 1,200 units were produced, and the
company worked 1,800 direct labor-hours. What would the standard hours
allowed for June production be?
A. 4,500 hours.
B. 1,800 hours.
C. 3,600 hours.
D. 3,000 hours.
Transcribed Image Text:Redwood Industries' standards call for 4,500 direct labor-hours to produce 1,500 units of product. During June, 1,200 units were produced, and the company worked 1,800 direct labor-hours. What would the standard hours allowed for June production be? A. 4,500 hours. B. 1,800 hours. C. 3,600 hours. D. 3,000 hours.
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