Final answer:
To find the standard hours allowed per unit of output, the labor efficiency variance and the standard wage rate are used. After calculations, it's determined that the standard hours allowed per unit of output is approximately 3.19 hours. Hence, the correct option is (a) 3.19. is the correct.
Step-by-step explanation:
To determine the standard hours allowed per unit of output, we use the given labor efficiency variance and the standard wage rate. A favorable labor efficiency variance indicates that the actual hours worked were less than the standard hours allowed for the output level achieved. The labor efficiency variance is calculated as (Actual Hours - Standard Hours) × Standard Wage. Here, the favorable variance is $22,500, and the standard wage rate is $12 per labor-hour.
Let's denote the standard hours allowed for the actual output as SH.
We have the equation $22,500 = (41,000 - SH) × $12
Solving for SH gives us:
SH = 41,000 hours - ($22,500 / $12 per hour)
SH = 41,000 hours - 1,875 hours
SH = 39,125 hours
To find the standard hours allowed per unit of output, we divide the standard hours allowed by the number of units made:
Standard hours per unit = SH / Number of units
Standard hours per unit = 39,125 hours / 12,250 units
The standard hours allowed per unit of output is thus approximately 3.19 hours per unit.
The correct option here is a. 3.19, which is mentioned as the correct option in the final answer.