Question

Gamma Inc. manufactures Product X using a single raw material. The standard quantity of input for the month of February was 3,000 units of raw material for 1,000 units of Product X. The actual output for the month of February was 1,300 units. Compute the standard quantity of raw material for actual output (SQ) of Product X.

Answer 1

Answer: 3900 units

Step-by-step explanation:

The standard quantity of raw material for actual output (SQ) of Product X will be calculated thus:

Standard quantity of raw material per unit will be calculated as the standard quantity of input for February divided by the standard units that was produced in February. This will be;

= 3000/1000

= 3 per unit

Then, the standard quantity of raw material for actual output will be:

= Actual output x Standard quantity of raw material per unit

= 1300 units x 3 per unit

= 3900 units