Question

Stillwater designs rebuilds defective units of its S12L7 kicker speaker model. During the year, stillwater rebuilt 7,500 units. Materials and labor standards for performing the repairs are as follows:

Direct materials {1 recon kit @ $150 $150.00

Direct materials {1 cabinet @ $50} 50.00

Direct labor {5 hours @ $12 60.00

1. Compute the standard hours allowed for a volume of 7,500 rebuilt units.

2. Compute the standard number of kits and cabinets allowed for a volume of 7,500 rebuilt units.

3. Suppose the during the first month of the year, 3,750 standard hours were allowed for the units rebuilt. How many units were rebuilt during thenfirst month?

Answer 1

To compute the standard hours allowed for 7,500 rebuilt units, multiply the number of units by the number of hours per unit. To compute the standard number of kits and cabinets allowed for 7,500 rebuilt units, multiply the number of units by the number of kits and cabinets per unit. If 3,750 standard hours were allowed, divide the total standard hours by the standard hours per unit to determine the number of units rebuilt.

Step-by-step explanation:

To compute the standard hours allowed for a volume of 7,500 rebuilt units, we multiply the number of units by the number of hours per unit. In this case, 7,500 units multiplied by 5 hours per unit gives us 37,500 standard hours allowed.

To compute the standard number of kits and cabinets allowed for a volume of 7,500 rebuilt units, we multiply the number of units by the number of kits and cabinets per unit. In this case, 7,500 units multiplied by 1 kit and 1 cabinet per unit gives us 7,500 standard kits and 7,500 standard cabinets allowed.

If 3,750 standard hours were allowed for the units during the first month, then we can divide the total standard hours allowed by the standard hours per unit to determine the number of units rebuilt. In this case, 3,750 divided by 5 hours per unit gives us 750 units rebuilt during the first month.

Answer 2

(1) 37,500 hours

(2) 7,500 kits

(3) 750 units

Step-by-step explanation:

(1) Standard Hours allowed for 7500 rebuilt units:

= 7,500 × Direct labor hours

= 7,500 × 5 hours

= 37,500 hours

(2) Standard number of kits:

= 7,500 x 1 kits

= 7,500 kits

Standard number of cabinets:

= 7500 × 1 kits

= 7500 kits

(3) Number of units rebuilt:

= standard hours allowed for the units rebuilt ÷ Direct labor hours

= 3,750 ÷ 5

= 750 units