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Glove co makes high quality hand made gloves which it sells for $180 per pair. The standard cost of labour for each pair is $42 and the standard labour time for each pair is 3hrs.
In d last quarter glove co had budgeted production of 12000 pairs although actual production was 12600 pairs inorder to meet demand.37000 hours were used to complete d work, there was no idle time. The total labour cost for d quarter was $531,930.
At d beginning of d last quarter, d design of d glove was changed slightly. D new design required workers to sew the company logo on to the back of every glove made and d estimated time to do this was 15 minutes. However no one to the company accountant responsible for recording standard cost that the standard time pair of gloves needed to be changed.
Please what is the revised standard hours per pair? I don’t know how they got 3.25hrs , I thought it would be 15/60 (0.25hrs)
Originally the gloves did not have the logo sewn on the back and the standard time was 3 hours.
Now the same gloves need to have the logo sewn on and that takes another 0.25 hours. So the total time becomes 3.25 hours.
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