Sandys sauces which produces stir fry sauces is developing d

Sandy\'s sauces, which produces stir- fry sauces, is developing direct material standards. Each bottle of sauce required 0.6 Kilograms of base. The allowance for waste is 0.6 kilograms per bottle, while the allowance for rejects is 0.7 Kilograms per bottle. What is the standard quantity of base per bottle? A 0.6 Kilograms B. 1.2 Kilograms C. 1.3 Kilograms D. 1.9 Kilograms

Solution

Quantity of material that is wasted and rejected is also input in the process of production alongwith the actual material used for production.

Standard quantity of base per bottle = 0.6 + 0.7 + 0.60 = 1.9

D option is correct.