Fletcher Company collected the following data regarding production of one of its products. Compute the standard quantity allowed for the actual output. $\begin{array}{llr}
\text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \
\text { Actual direct materials used} &243,000& \text {Ibs. } \
\text {Actual finished units produced } &40,000& \text {units } \
\text { Actual cost of direct materials used } &\$483,570\
\end{array}$

A) 80,000 pounds.
B) 40,000 pounds.
C) 480,000 pounds.
D) 243,000 pounds.
E) 240,000 pounds.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the standard quantity allowed for the actual output. $\begin{array}{llr}
  \text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \
 \text {  Actual direct materials used} &243,000& \text {Ibs.  } \
 \text {Actual finished units produced  } &40,000& \text {units  } \
 \text { Actual cost of direct materials used } &\$483,570\
\end{array}$

A) 80,000 pounds.
B) 40,000 pounds.
C) 480,000 pounds.
D) 243,000 pounds.
E) 240,000 pounds.

Quizplus · Accepted Answer

To calculate the standard quantity allowed for the actual output, we need to multiply the standard quantity per unit by the actual output. From the given data, we know that the standard quantity per unit is 2,000 pounds and the actual output is 120 units. Therefore, the standard quantity allowed for the actual output is 2,000 pounds per unit x 120 units, which equals 240,000 pounds. Hence, the best choice is E.

Fletcher Company Collected the Following Data Regarding Production of One