Question
Bridgetown Corporation produces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is .4 pounds and
Bridgetown Corporation produces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is .4 pounds and .1 pounds, respectively. The purchase price is $4 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.15 per pound. The hourly wage rate is $9.00 per hour, but a raise which will average $.50 will go into effect soon. Fringe benefits average $2.00 per hour. Standard production time is 2 hours per unit, and the allowances for rest periods and setup are .1 hours and .2 hours. The standard direct materials price per pound is
The standard direct materials quantity per unit is
The standard direct labor rate per hour is
The standard direct labor hours per unit is
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