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23 November, 04:07

Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires six direct-labor hours, while the professional binoculars require eight hours. The firm uses direct-labor hours for flexible budgeting. How many standard hours are allowed in May, when 300 field models and 400 professional binoculars are manufactured?

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  1. 23 November, 06:17
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    Standard hours allowed in May:

    Field = 6 hrs x 300 = 1,800 hrs

    Professional = 8 hrs x 400 = 3,200 hrs

    Total standard hours allowed 5,000 hours

    Explanation:

    In this case, we need to multiply the direct labour hours allowed for each product by the number of unit produced for each product.
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