What is the standard allowed quantity for actual output if standard is 0.5 pound per unit and actual output is 35,000 units?

What is the standard allowed quantity for actual output if standard is 0.5 pound per unit and actual output is 35,000 units?

• A. 18,000 pounds
• B. 17,500 pounds
• C. 35,000 pounds
• D. 7,000 pounds

Answer: (B)

Think of the standard allowed quantity as how much input should be used for the actual production, based on the standard usage per unit. Multiply the standard per-unit usage by the actual output: 0.5 pounds per unit × 35,000 units = 17,500 pounds. This is the amount that should have been used if production were at the standard rate. The other numbers would require a different per-unit standard or a different level of output, so they don’t fit this scenario.

Think of the standard allowed quantity as how much input should be used for the actual production, based on the standard usage per unit. Multiply the standard per-unit usage by the actual output: 0.5 pounds per unit × 35,000 units = 17,500 pounds. This is the amount that should have been used if production were at the standard rate. The other numbers would require a different per-unit standard or a different level of output, so they don’t fit this scenario.