Question

Standard Quantities Allowed of Labor and Materials Miel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 10 ounces of rolled oats per carton (the unit quantity standard) and 0.04 labor hour (the unit labor standard). During the year, 600,000 cartons of oatmeal were produced. Required:

1. Calculate the total amount of oats allowed for the actual output. ounces
2. Calculate the total amount of labor hours allowed for the actual output. hours

Answer 1

1. 6.000.000 ounces

2. 24.000 hours.

Step-by-step explanation:

1. total amount of oats allowed for the actual output=(10 ounces/carton*600,000 cartons)

=6.000.000 ounces

2. total amount of labor hours allowed for the actual output=(600,000 cartons*0.04 hours/carton)

=24.000 hours.