Gold Manufacturing Company produces three different sizes of brass beds: twin size, queen size, and king size. The following data has been accumulated for the next accounting period, 19X8: lop7

Required:
a Calculate the following standards for the twin, queen, and king size beds for 19X8:
1 Direct materials price per unit 2 Direct materials efficiency per unit 3 Direct labor price per hour 4 Direct labor efficiency (hours) per unit 5 Variable factory overhead application rate per direct labor hour 6 Fixed factory overhead application rate per direct labor hour b Compute the total standard cost per unit for the twin, queen, and king size beds for 19X8.

Transcribed Image Text:

Pounds of brass required Projected annual production (units) Molding time per unit Assembling time per unit Twin Queen King 70 300 90 120 800 200 4 hours 6 hours 8 hours 3 hours 5 hours 7 hours Cost per pound of brass is $5. Quantity discounts on the brass (based on total pounds ordered annually) are as follows: Total discount Above 25,000 pounds 10% Above 75,000 pounds 20% Above 150,000 pounds 25% Average salary per hour is Molders $14 Assemblers... 8 Factory overhead is applied based on direct labor hours and is budgeted as follows: Budgeted variable factory overhead... $ 55,600 Budgeted fixed factory overhead 111,200 Gold Manufacturing Company uses a process cost system to accumulate costs.