Anemone Company manufactures model airplanes.During the month, it manufactured 20,000 airplanes.Each one used an average of 8 direct labor hours and an average of 2 sheets of aluminum.It normally manufactures 8,000 airplanes.Materials and labor standards for making the airplanes are as follows:
Compute the standard hours allowed for a volume of 20,000 airplanes.
A) 100,000 hours
B) 420,000 hours
C) 70,000 hours
D) 65,000 hours

Question

Anemone Company manufactures model airplanes.During the month, it manufactured 20,000 airplanes.Each one used an average of 8 direct labor hours and an average of 2 sheets of aluminum.It normally manufactures 8,000 airplanes.Materials and labor standards for making the airplanes are as follows: 
 Compute the standard hours allowed for a volume of 20,000 airplanes.
A) 100,000 hours 
B) 420,000 hours 
C) 70,000 hours 
D) 65,000 hours

Quizplus · Accepted Answer

Standard Hours (SH) = Unit Labor Standard × Actual Output = 5 × 20,000 = 100,000 hours

Anemone Company Manufactures Model Airplanes