Multiple Choice
Reference: 11-03
The Albright Company uses standard costing and has established the following standards for its single product: The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-To measure controllable production inefficiencies, which of the following is the bes? basis for a company to use in establishing the standard hours allowed for the output of one unit of product?
A) The hours per unit that would be required for the present workforce to satisfy expected demand over the long run.
B) Average historical performance for the last several years.
C) Engineering estimates based on attainable performance.
D) Engineering estimates based on ideal performance.
Correct Answer:

Verified
Correct Answer:
Verified
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