During the year, Marsing Company produced 45,000 mechanical components for a tractor manufacturer. Marsing’s materials and labor standards are:

Direct materials (3 components @ 8.00) $24.00 Direct labor (0.8 hr @ $12.00) 9.60 Required:

1. Compute the standard hours allowed for the production of 45,000 units.

2. Compute the standard number of components allowed for the production of 45,000 units. lop5