Question

Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires six direct-labor hours, while the professional binoculars require eight hours. The firm uses direct-labor hours for flexible budgeting.How many standard hours are allowed in May, when 300 field models and 400 professional binoculars are manufactured?

Answer 1

Answer:

Standard hours allowed in May:

Field             = 6 hrs x 300 = 1,800 hrs

Professional = 8 hrs x 400 = 3,200 hrs

Total standard hours allowed 5,000 hours

Explanation:

In this case, we need to multiply the direct labour hours allowed for each product by the number of unit produced for each product.