Question

Which of the following is used to compute the standard quantity of material allowed for the actual output? a.Unit Quantity Standard × Actual Output b.Fixed Quantity Standard × Actual Input c.Fixed Quantity Standard × Standard Output d.Unit Quantity Standard × Standard Input e.None of these choices are correct.

Answer 1

A) Unit Quantity Standard × Actual Output

Step-by-step explanation:

The Unit Quantity Standard is the amount of materials that should have been used to manufacture one unit.

The actual output is how many units were actually produced.

The total standard material quantity allowed is the total amount of materials used to produce the output units. In order to calculate the total standard material quantity allowed, we have to multiply the unit quantity standard times the actual output in units.

For example, the unit quantity standard was 2 lbs. per unit and the actual output was 5,000 units, then the total standard material quantity allowed = lbs. per unit x 5,000 units = 10,000 lbs.