Question

Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires six direct-labor hours, while the professional binoculars require eight hours. The firm uses direct-labor hours for flexible budgeting.

Required:

How many standard hours are allowed in May, when 750 field models and 850 professional binoculars are manufactured?

Total standard hours allowed

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Answer #1

Total standard hours allowed

= For field model (6*750) + For professional (8*850)

= 4500 + 6800

= 11,300 hours

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