Cost standards for one unit of product no. C77:

Direct material 3 pounds at $2.60 per pound $7.80

Direct labor 6 hours at $7.30 per hour 43.80

Actual results:

Units produced 6,800 units

Direct material purchased 27,000 pounds at $2.80 $75,600

Direct material used 20,100 pounds at $2.80 56,280

Direct labor 41,100 hours at $7.10 291,810

Assume that the company computes variances at the earliest point in time.

What are the standard hours allowed for the work performed?

a) 40,210

b) 40,950

c) 40,800

d) 40,700

e) None of the answers are correct.