Dictionary of Accounting Terms: standard hours allowed
standard hours allowed
time that should have been used to manufacture actual units of output during a period. It is obtained by multiplying actual units of production by the standard labor time. For example, a company actually produced 2000 units during the month of March. The standard labor time required to produce one unit of output was 3 hours. The standard hours allowed for actual production is 2000 units x 3 hours = 6000 hours.
