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 found that a typical oil change takes 30 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. fill in the blank 1 quarts 2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. fill in the blank 2 direct labor hours 3. What if there had been 930 oil changes in June

Guillermo's Oil and Lube Company

1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes is:

= 6,204 quarts.

2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes is:

= 470 hours.

Explanation:

a) Data and Calculations:

Time taken for a typical oil change = 30 minutes or 0.5 hours (30/60)

Standard quarts of oil for a typical oil change = 6.6 quarts

Total oil changes in June = 940

1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes = 6,204 (940 * 6.6) quarts

2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes = 470 (0.5 * 940) hours

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