Thyne Inc. 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. The actual output for the period was 3,900 units.
The standard amount of materials allowed for the actual output is closest to:
A) 24,979 grams
B) 28,980 grams
C) 26,900 grams
D) 26,910 grams

Question

Thyne Inc. 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.  The actual output for the period was 3,900 units.
The standard amount of materials allowed for the actual output is closest to:
A) 24,979 grams 
B) 28,980 grams 
C) 26,900 grams 
D) 26,910 grams

Quizplus · Accepted Answer

SQ = 3,900 units × 6.9 grams per unit = 26,910 grams

Thyne Inc Has Provided the Following Data Concerning One of the the Products