Question

The unit quantity standard of a product is 3 pounds per package, and the unit quantity standard for machine hours is 0.40 hours per package. During August, 210,000 packages were produced. 440,000 pounds and 85,000 hours were used in production. How many pounds and how many machine hours should have been used for the actual output

Answer 1

Answer:

The pounds of materials should have been

= 630,000 pounds.

The machine hours should have been

= 84,000 hours.

Explanation:

a) Data and Calculations:

Standard materials per package = 3 pounds

Standard machine hours per package = 0.40 hours

Actual production units during August = 210,000 units

Actual materials used = 440,000 pounds

Actual machine hours used = 85,000 hours

Standard materials = 630,000 pounds (210,000 * 3)

Standard machine hours = 84,000 hours (210,000 * 0.40)