Question
Nestl, manufacturer of Purina Dog Chow, produces its product in 500-bag batches. Assume the standard batch consists of 10,000 pounds of direct materials at $0.25
Nestl, manufacturer of Purina Dog Chow, produces its product in 500-bag batches. Assume the standard batch consists of 10,000 pounds of direct materials at $0.25 per pound, 16 direct labor hours at $15 per hour, and variable overhead cost (based on machine hours) at the rate of $20 per hour with 10 machine hours per batch. The following variable costs were incurred for the last 500-bag batch produced:
PLEASE ANSWER PART A ONLY, THE TOTAL VARIABLE COST IS SUPPOSED TO BE TWO DECIMAL PLACES, IT IS NOT 5.40, so i think it's amissing a number, please help me solve this, thank you!!
(a) Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead. Round your answers to three decimal placesStep by Step Solution
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