Question
In connection with a standard cost system being developed by Flint Co., the following information is being considered with regard to standard hours allowed for
In connection with a standard cost system being developed by Flint Co., the following information is being considered with regard to standard hours allowed for output of one unit of product: Hours Average historical performance for the past 3 years 1.85 Production level to satisfy average consumer demand over a seasonal time span 1.60 Engineering estimates based on attainable performance 1.50 Engineering estimates based on ideal performance 1.25 To measure controllable production inefficiencies, what is the best basis for Flint to use in establishing standard hours allowed? A. 1.60 B. 1.85 C. 1.25 D. 1.50
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