Question - Dauterive Co. manufactures wooden pen and pencil holders. The following materials and labor standards have been set for one holder.
5 ounces of wood at $0.50 per ounce $2.50
4 minutes of labor times at $9.00 per hour 0.60
During July, the company incurred the following costs to manufacture 46,800 holders.
14,250 pounds of wood at $8.30 per pound $118,275
3,840 hours of labor time at $9.25 per hour 35,520
Required: What is the standard quantity of material allowed for the actual production?