Question:
COMPUTATION OF INPUTS ALLOWED, DIRECT MATERIALS AND DIRECT LABOR During the year, Vandy Company produced 300,000 drilling components for oil and gas rigs. Vandy's direct materials and direct labor standards are as follows:
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Direct materials (6.25 lbs. @ $4)
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$25.00
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Direct labor (1.5 hrs. @ $13)
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19.50
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Required:
1. Compute the standard pounds of direct materials allowed for the production of 300,000 units.
2. Compute the standard direct labor hours allowed for the production of 300,000 units.