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E10-26: p. 460

Exercise 10-26 Standard Quantities of Labor and Materials

Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 7,500 units. Materials and labor standards for performing the repairs are as follows:

Direct materials (1 recon kit @ $150)	$150.00
Direct materials (1 cabinet @ $50)	50.00
Direct labor (5 hrs. @ $12)	60.00

Required:

• 1.Compute the standard hours allowed for a volume of 7,500 rebuilt units.
• 2.Compute the standard number of kits and cabinets allowed for a volume of 7,500 rebuilt units.
• 3.Suppose that during the first month of the year, 3,750 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month?

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