Question 5

Lacrue Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output			Standard Price or Rate
Direct materials		6.3	ounces	$	5.50	per ounce
Direct labor		0.40	hours	$	22.00	per hour
Variable manufacturing overhead		0.40	hours	$	3.80	per hour

The standard amount of materials allowed for the actual output is closest to:

		23,310 ounces
		23,300 ounces
		22,687 ounces
		23,940 ounces