Mcgann Corporation is developing standards for its products. Each unit of output of the product requires 0.53 kilogram of a particular input. The allowance for waste and spoilage is 0.06 kilogram of this input for each unit of output. The allowance for rejects is 0.12 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be:
A) 0.53
B) 0.35
C) 0.71
D) 0.47

Question

Quizplus · Accepted Answer

To calculate the standard quantity of input per unit of output, we need to add the actual input required per unit (0.53 kg) to the allowances for waste and spoilage (0.06 kg) and rejects (0.12 kg).

Standard quantity = actual input + allowance for waste/spoilage + allowance for rejects 
Standard quantity = 0.53 + 0.06 + 0.12 
Standard quantity = 0.71

Therefore, the standard quantity in kilograms of the input per unit of output is 0.71 kg. Hence, the correct answer is C.

Mcgann Corporation Is Developing Standards for Its Products