Calculating Standard Quantities for Actual Production

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.3 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes.

Required:

1. Calculate the number of quarts of oil that should have been used (SQ) for 940 oil changes. fill in the blank 1 quarts

2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. fill in the blank 2 direct labor hours

3. What if there had been 930 oil changes in June? Would the standard quantities of oil (in quarts) and of direct labor hours be higher or lower than the amounts calculated in Requirements 1 and 2?

HigherLowerLower

What would the new standard quantities be? Round your answers to two decimal places.

SQ	fill in the blank 4	quarts
SH	fill in the blank 5	direct labor hours