History Bookmarks People Window Help 59% Mon 10:25 AM thun x/Take Test: Unit 9 Q

Question

History Bookmarks People Window Help 59% Mon 10:25 AM thun x/Take Test: Unit 9 Quiz on Calc e 400 x 145460-1&course-id-;,43964-18content/d=-2823952-1&que.; Question Completion Status Abba Company produces sails for boats. The Houston plant uses a standard costing system with the following standards and actuals ndards Direct Labor 5 12 0.5 hours Standard Rate Standard Usa Variable Overhead Standard Rate ember Data Budgeted Fixed Overhead for December5154,504 Number of Sails Produc Oirect Labor 129,020 hours Actual Fixed Overhead Costs Direct labor is the basis for applying variable and fixed overhead. What is practical capacity using standard labor hours? 20 p 2 0 WE

Explanation / Answer

Standard Hours for producing one sail = 0.5 hrs

Actual Production = 30,924 units

Actual hours used = 29,020 hrs

Practical Capacity using standard Labour Hours = Actual hrs used / Standard hrs for one sail

= 29,020 hrs/ 0.5 hrs

= 58,040 units of sails

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