Question

Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum. It normally manufactures 7,500 airplanes. Materials and labor standards for making the airplanes are as follows: Direct Materials (1 sheet of aluminum @ $10.00) $10.00 Direct Materials (other accessories @ $8.75) 8.75 Direct Labor (6 hours @ $7.00) 42.00 Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes. a. 10,000 sheets b. 15,000 sheets c. 11,250 sheets d. 7,500 sheets

Answer 1

Answer:

a. 10,000

Explanation:

Standard material provided, for each plane 1 sheet of aluminium, therefore, material for 10,000 planes = 10,000 $\times$ 1 = 10,000

Average sheets provided for 7,500 units of 1.5 units is not to be considered as this is actual and not standard, and not important.

As the average is based on actual results, and standard is set as based on standard capacities.

Therefore final answer is 10,000 sheets.