Material requirements plus an allowance for normal inefficiencies are added together to determine the standard quantity of a direct material per unit of output.
What is the standard quantity?
- The number of resources that should have been utilized to finish the period's output, as determined by multiplying the actual number of units produced by the standard quantity per unit.
- It is calculated by multiplying actual production units by the standard material quantity per unit.
- For example, during the month of March, a company manufactured 2000 items.
- The typical amount of material needed to produce one unit of output was 5 pounds.
- A standard amount against which a quantity is measured [e.g., gram, meter, second, liter, pascal; units of the aforementioned quantities].
- Chemists conduct many measurements.
- If the mass of a substance is discovered to be 6.0 grams, this can be stated mathematically. m = 6.0 g.
Therefore, material requirements plus an allowance for normal inefficiencies are added together to determine the standard quantity of a direct material per unit of output.
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The complete question is given below:
Material requirements plus an allowance for normal inefficiencies are added together to determine the ___________________ of a direct material per unit of output.