MAC revised standard
meibaker
Registered Posts: 481 Dedicated contributor 🦉
i am bit confused why it should be 99% instead of 101%
Q: actual produciton level 5500 units, standard direct material cost of each unit 150 litres @ £1.25 per litre
a new production methods have improved standard material usage by 1% ,
the revised standard usage for the actuall production level, based on the new production methods ?
thanks in advance
Q: actual produciton level 5500 units, standard direct material cost of each unit 150 litres @ £1.25 per litre
a new production methods have improved standard material usage by 1% ,
the revised standard usage for the actuall production level, based on the new production methods ?
thanks in advance
0
Comments
-
because you need less materials by 1% (production method has been improved), so 100-1=99
therefore you need 150 l-1%=145 l
hope this help
Bozena0
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