Question
Fast-Flow Paints produces mixer base paint through a two stage process, Mixing and Packaging. The following events depict the movement of value into and out
(a) $27,000.00 worth of materials are withdrawn from Raw Materials inventory. Of this amount, $25,000.00 will be issued to the Mixing Department and the balance will be issued to the maintenance Department to be used on production line machines.
(b) Bob calculates that labor for the period is $12,000.00. Of this value $1,750.00 is for maintenance and indirect labor. The remainder is directly associated with mixing.
(c) Bob, who is paid a salary but earns about $35.00/hour, spends 1 hour inspecting the production line.
(d) The manufacturing overhead drivers for Mixing are (1) hours of mixer time at $575.00 per hour, and material movements from Raw Materials at $125.00 per movement. An inspection of the machine timers reveals that at total of 8 hours has been consumed in making this product. An inspection of
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