Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has fou typical oil change takes 21 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes. Required: 1. Calculate the number of quarts of oil that should have been used (SQ) for 940 oil changes. X quarts 2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. X direct labor hours 3. What if there had been 930 oil changes in June? Would the standard quantities of oil (in quarts) and of direct labor hours be higher or lower than the amour calculated in Requirements 1 and 2? Lower What would the new standard quantities be? Round your answers to two decimal places.

Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has fou typical oil change takes 21 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes. Required: 1. Calculate the number of quarts of oil that should have been used (SQ) for 940 oil changes. X quarts 2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. X direct labor hours 3. What if there had been 930 oil changes in June? Would the standard quantities of oil (in quarts) and of direct labor hours be higher or lower than the amour calculated in Requirements 1 and 2? Lower What would the new standard quantities be? Round your answers to two decimal places.

Name: FA4: Standard Costing and VarianceCalculating Standard Quantities for
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Description: FA4: Standard Costing and VarianceCalculating Standard Quantities for Actual ProductionGuillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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