Question

Ford has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 6.9 grams $ 9.20 per gram Direct labor 0.90 hours $ 21.20 per hour Variable manufacturing overhead 0.90 hours $ 3.60 per hour ________________________________________ The standard amount of materials allowed for the actual output is closest to: Select one: a. 24,979 grams b. 26,910 grams c. 28,980 grams d. 26,900 grams

Answer 1

• Standard amount of material allowed for actual output = Actual Output x Standard material per unit of output.
• Since you have LEFT OUT and did not provide the actual output, follow the below instructions:

--Go through your complete question,

1.IF ACTUAL OUTPUT given is 3,900 units, the correct answer is Option ‘b’ 26,910 grams [3900 units x 6.9 grams],

AND

2.IF ACTUAL OUTPUT given is 4,200 units, the correct answer is Option ‘c’ 28,980 grams [4200 units x 6.9 grams]