Lacrue 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 3,700 units.
The standard amount of materials allowed for the actual output is closest to:
A) 23,310 ounces
B) 23,300 ounces
C) 22,687 ounces
D) 23,940 ounces

Question

Lacrue 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 3,700 units.
The standard amount of materials allowed for the actual output is closest to:
A) 23,310 ounces 
B) 23,300 ounces 
C) 22,687 ounces 
D) 23,940 ounces

Quizplus · Accepted Answer

SQ = 3,700 units × 6.3 ounces per unit = 23,310 ounces