The standard hours per unit include both direct and indirect labor hours. this statement is false
The formula for standard time is Standard Tolerance Time = Standard Time Required per Unit * Actual Number of Units Produced. This formula gives the standard number of hours required to manufacture a specified number of products.
Each employee has his 30-minute break and 30-minute lunch break for a total of 1 hour. The standard direct working time for a job is from 8 hours he 1 hour, which is 7 hours. The direct labor target price serves as a benchmark for direct labor costs.
Known constants are 40 hours per week, 52 weeks per year, 12 months per year. 40 hours per week x 52 weeks per year / 12 months per year = 173.33 average hours per month. Look at these results.
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