Question

Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a particular input. The allowance for waste and spoilage is 0.02 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be: Select one: a. 0.90 b. 0.92 c. 0.79 d. 1.05

Answer 1

d. 1.05 kilograms

Step-by-step explanation:

Since we are looking for the standard quatity in kilograms of input per unit of out put we are going to sum up all the input for each unit of output in order to arrived at the standard quantity in kilograms.

Output unit required 0.92 kg

Add: waste and spoilage allowance 0.02 kg

Allowance rejected 0.11 kg

Standard quantity in kilograms 1.05 kg