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Standard hour

A standard hour is the amount of work expected to be performed in one hour under the specified standard. Output can be translated into standard hours to compare production volumes across different products. It is a measure of work content, not necessarily an actual clock hour worked. Calculate standard hours for the actual output using the standard time per unit, then compare with actual or budgeted hours as appropriate.

Worked example

Product A requires 0.5 standard hours per unit and B requires 2. Producing 100 A and 40 B gives 50 + 80 = 130 standard hours of output.

Common mistake

Do not use actual time per unit when the calculation asks for standard hours produced.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027