Straight Corporation manufactures a set of four plastic rulers. Each set contains one each of the following
Question:
Straight Corporation manufactures a set of four plastic rulers. Each set contains one each of the following size rulers: 6”, 9”, 12”, and 15”. The following data has been collected:
The plastic required to produce one ruler is in direct proportion to the size of the ruler.
The 9” ruler requires 43 ounces of plastic.
Straight Corporation used 15,750 pounds of plastic during the current period.
The 15,750 pounds of plastic cost a total of $63,000 (exactly equal to the total budgeted cost for the production achieved). Straight Corporation uses a process. cost accumulation system to accumulate costs. kio8 Required:
Compute the a Number of sets of plastic rulers that should have been made.
b Direct materials standard price for the company.
c Direct materials efficiency standard per set.
Step by Step Answer:
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg