Question

Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires eight direct-labor hours, while the professional binoculars require ten hours. The firm uses direct-labor hours for flexible budgeting. Required: How many standard hours are allowed in May, when 850 field models and 950 professional binoculars are manufactured?

Answer 1

Answer:

16,300 Direct Labor Hours

Explanation:

Evening Star Inc. produces two models.

The field model requires eight(8) direct-labor hours.

The professional binoculars require ten(10) direct-labor hours.

In May,

Number of field binocular manufactured=850

Number of professional binocular manufactured=950

Therefore:

• Standard Hour for 850 field model = 850 X 8 =6800 Hours
• Standard Hour for 950 professional model = 950 X 10 =9500 Hours

Total Standard Hours allowed in May = 6800+9500

=16300 Direct Labor Hours