Question

Dulce Company produces chocolate. Each pound of chocolate requires 400 cocoa beans (the unit quantity standard) and 0.15 labor hour (the unit labor standard). During the year, 480,000 pounds of chocolate were produced.

Required:


1. Calculate the number of cocoa beans allowed for the actual output.

beans


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

Answer 1

Instructions are below.

Step-by-step explanation:

Giving the following information:

Each pound of chocolate requires 400 cocoa beans and 0.15 labor hours.

During the year, 480,000 pounds of chocolate was produced.

First, we need to calculate the number of cocoa beans required to produce 480,000 units.

Number cocoa beans= 480,000*400= 192,000,000 cocoa beans.

Now, the hours of labor required.

Direct labor allowed= 480,000*0.15= 72,000 hours