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Question Content Area Anemone Company manufactures model airplanes. During the month, it manufactured 20,000 airplanes. Each one used an average of 8 direct labor hours
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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:
Line Item Description | Cost |
---|---|
Direct materials (1 sheet of aluminum @ $12) | $12 |
Direct materials (other accessories @ $9) | 9 |
Direct labor (5 hours @ $5) | 25 |
Compute the standard hours allowed for a volume of 20,000 airplanes.
a.40,000 hours
b.70,000 hours
c.100,000 hours
d.65,000 hours
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