Required: 1. Compute the standard hours allowed for a volume of 6,000 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 6,000 rebuilt units. Standard number of kits: kits Standard number of cabinets: cabinets 3. Suppose that during the first month of the year, 3,150 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole unit. units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...
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Standard Quantities of Labor and Materials

Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 6,000 units. Materials and labor standards for performing the repairs are as follows:

Direct materials (1 recon kit @ $150) $150
Direct materials (1 cabinet @ $60) 60
Direct labor (8 hrs. @ $11) 88
Required:
1. Compute the standard hours allowed for a volume of 6,000 rebuilt units.
hours
2. Compute the standard number of kits and cabinets allowed for a volume of 6,000 rebuilt units.
Standard number of kits:
kits
Standard number of cabinets:
cabinets
3. Suppose that during the first month of the year, 3,150 standard hours were allowed for the units
rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole
unit.
units
Transcribed Image Text:Required: 1. Compute the standard hours allowed for a volume of 6,000 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 6,000 rebuilt units. Standard number of kits: kits Standard number of cabinets: cabinets 3. Suppose that during the first month of the year, 3,150 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole unit. units
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