Question

Lacrue Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 6.3 ounces $ 5.50 per ounce Direct labor 0.40 hours $ 22.00 per hour Variable manufacturing overhead 0.40 hours $ 3.80 per hour The actual output for the period was 3,700 units. The standard amount of materials allowed for the actual output is closest to:

Answer 1

Answer:

the standard amount of materials allowed for the actual output is 23,310 ounces

Explanation:

The computation of the standard amount of materials allowed for the actual output is shown below:

= Actual output × direct material

= 3,700 units × 6.3 ounces

= 23,310 ounces  

hence, the standard amount of materials allowed for the actual output is 23,310 ounces

The same is relevant