Question

Standard Hours Allowed; Flexible Budgeting; Multiple Products (LO 11-1, 11-2) Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires three direct-labor hours, while the professional binoculars require five hours. The firm uses direct-labor hours for flexible budgeting.
Required:

How many standard hours are allowed in May, when 950 field models and 1,050 professional binoculars are manufactured?

Answer 1

Answer:

8,100 hours

Explanation:

The computation of standard hours is shown below:-

Total standard hours allowed = (Field models × Field models hours) + (professional binoculars × Professional binoculars hours)

= (950 × 3) + (1,050 × 5)

= 2,850 + 5,250

= 8,100 hours

Therefore for computing the total standard hours allowed we simply applied the above formula.