Question

Standard Quantities Allowed of Labor and MaterialsMiel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 16 ounces of rolled oats per carton (the unit quantity standard) and 0.04 labor hour (the unit labor standard). During the year, 960,000 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

Part I :

1) Total amount of oats allowed = 960000*16 = 15360000 ounce

2) Total amount of labor hours allowed = 960000*.04 = 38400 Hours

Part II :

1) Total amount of oats allowed = 750000*17 = 12750000 ounce

2) Total amount of labor hours allowed = 750000*.04 = 30000 Hours