Fletcher Company collected the following data regarding production of one of its products.

-Compute the standard quantity allowed for the actual output.
A)243,000 pounds.
B)240,000 pounds.
C)40,000 pounds.
D)480,000 pounds.
E)80,000 pounds.

Question

Fletcher Company collected the following data regarding production of one of its products.

-Compute the standard quantity allowed for the actual output. 
A)243,000 pounds. 
B)240,000 pounds. 
C)40,000 pounds. 
D)480,000 pounds. 
E)80,000 pounds.

Quizplus · Accepted Answer

To compute the standard quantity allowed for the actual output, we need to use the formula:
Standard Quantity = Actual Output x Standard Quantity per Unit
From the given data, we know that:
- Actual Output = 12,000 units
- Standard Quantity per Unit = 20 pounds
Therefore, the standard quantity allowed for the actual output is:
Standard Quantity = Actual Output x Standard Quantity per Unit
= 12,000 units x 20 pounds per unit
= 240,000 pounds
Hence, the best choice is B.

Fletcher Company Collected the Following Data Regarding Production of One