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15 September, 08:32

Standard Hours Allowed; Flexible Budgeting; Multiple Products (LO 11-1, 11-2) Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires three direct-labor hours, while the professional binoculars require five hours. The firm uses direct-labor hours for flexible budgeting.

Required:

How many standard hours are allowed in May, when 950 field models and 1,050 professional binoculars are manufactured?

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  1. 15 September, 08:52
    0
    8,100 hours

    Explanation:

    The computation of standard hours is shown below:-

    Total standard hours allowed = (Field models * Field models hours) + (professional binoculars * Professional binoculars hours)

    = (950 * 3) + (1,050 * 5)

    = 2,850 + 5,250

    = 8,100 hours

    Therefore for computing the total standard hours allowed we simply applied the above formula.
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