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I really need help solving this, i honestly cant figure it out Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These
I really need help solving this, i honestly cant figure it out
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards Materials Item Metal Plastic Rubber Per unit 1 lb 12 oz 4 oz Cost 63 per lb $1.00 per lb 88 per lb Direct labor Item Labor Predetermined overhead rate based on direct labor hours Per unit 15 min Cost $8.00 per hr $4.28 The January figures for purchasing, production, and labor are: The company purchased 229,000 pounds of raw materials in January at a cost of 78 a pound Production used 229,000 pounds of raw materials to make 115,500 units in January Direct labor spent 18 minutes on each product at a cost of $7.80 per hour Overhead costs for January totaled $54,673 variable and $73,800 fixedStep by Step Solution
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