The assembly department has concentrated on one product, a transformer, during the past week. The following standard
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The assembly department has concentrated on one product, a transformer, during the past week. The following standard rates were applicable: directlabor rate, $9.00 per hour; combined overhead rate, $12.00 per hour; copper and other materials, $20.00 per unit.
The production schedule for the past week called for 3,750 direct-labor hours, $26,250 variable-overhead costs, and $25,000 fixed-overhead costs. The flexible budget indicates that total overhead is linear over a wide range and would amount to $49,500 and $56,500 at production levels of 700 units and 900 units weekly, respectively.
What is the standard time for assembling a transformer?
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