Question

Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 9,000 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $160) $160 Direct materials (1 cabinet @ $20) 20 Direct labor (3 hrs. @ $12) 36 1. Compute the standard hours allowed for a volume of 9,000 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 9,000 rebuilt units. Standard number of kits: kits Standard number of cabinets: cabinets 3. Suppose that during the first month of the year, 4,300 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole unit. units

Answer 1

1. Compute the standard hours allowed for a volume of 9,000 rebuilt units.
Answer = 9000 units x 3 hours = 27,000 hours Answer

2. Compute the standard number of kits and cabinets allowed for a volume of 9,000 rebuilt units.
Standard number of kits: = 9000 units x 1 kits = 9000 kits
Standard number of cabinets: = 9000 units x 1 cabinets = 9000 cabinets

3. Suppose that during the first month of the year, 4,300 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month?
= 4300 standard hours / 3 hrs
= 1,433 units