Question
Grow Right Products is a manufacturer of large flower pots for urban settings. The company has these standards: Direct materials (resin). . . . .
Grow Right Products is a manufacturer of large flower pots for urban settings. The company has these standards:
Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . | 9.6 pounds per pot at a cost of $4.55 per pound |
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1.0 hour at a cost of $15.80 per hour |
Standard variable manufacturing overhead rate. . . . | $3.40 per direct labor hour |
Predetermined fixed manufacturing overhead rate. . | $6.00 per direct labor hour |
Grow Right allocates variable and fixed manufacturing overhead to production based on standard direct labor hours.
1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.
2. Determine the standard cost of one flower pot.
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