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Answer corrextly The following information applies to the questions displayed below.] Wilderness Products, Inc., has designed a self-Inflating sleeplng pad for use by backpackers and
Answer corrextly The following information applies to the questions displayed below.] Wilderness Products, Inc., has designed a self-Inflating sleeplng pad for use by backpackers and campers. The following Information ls avallable about the new product: a. An Investment of $1,200,000 will be necessary to carry inventories and accounts receivable and to purchase some new needed in the manufacturing process. The company's required rate of on investments. b. A standard cost card has been prepared for the sleeplng pad, as shown below: Standard Standard Standard Quantity or Hours Price or Rate Cost 4.0 yards 3.50 per yard 14.00 Direct materials 3.0 hours 8.40 per hour 25.20 Direct labor 3.0 hours 13.30 per hour 39,90 Manufacturing overhead (VS variable) 7910 Total standard cost per pad c The only variable selling and administrative expense will be a sales commission of$9 per pad. Fixed selling and administrative expenses will be (per year: 75,000 Salaries 30,000 rent 1,293,345 Advertising and other 1,398,345 Total d. Because the company manufactures many products, no more than 51,000 direct labor-hours per year can be devoted to production of the new sleeping pads. e, Manufacturing overhead costs are allocated to products on the basis of direct labor-hours
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