The total standard material allowed is equal to the actual level of production times the standard quantity of material needed for each unit.

Question

Quizplus · Accepted Answer

The total standard material allowed is calculated by multiplying the actual level of production by the standard quantity of material that is budgeted or expected to be needed for each unit of production. This gives the amount of material that should have been used for the actual production achieved.

The Total Standard Material Allowed Is Equal to the Actual