What do the terms "standard quantity allowed" or "standard hours allowed" mean?
A) The actual output in units multiplied by the standard output allowed.
B) The actual input in units multiplied by the standard output allowed.
C) The actual output in units multiplied by the standard input allowed.
D) The standard output in units multiplied by the standard input allowed.

Question

Quizplus · Accepted Answer

Standard quantity allowed or standard hours allowed represent the amount of output in units or hours that should have been produced given the standard input. Therefore, the actual output in units (or hours) is multiplied by the standard input allowed to calculate the standard quantity allowed (or standard hours allowed). Thus, option C correctly represents the formula for standard quantity/hours allowed.

What Do the Terms "Standard Quantity Allowed" or "Standard Hours