Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oxford Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .2 pounds

image text in transcribed

Oxford Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .2 pounds and .4 pounds, respectively. The purchase price is $4 per pound, but a 3% discount is usually taken. Freight costs are $.08 per pound, and receiving and handling costs are $.04 per pound. The hourly wage rate is $22.00 per hour, but a 5% raise will go into effect soon. Payroll taxes are $1.40 per hour, and fringe benefits average $1.90 per hour. Standard production time is 1.5 hours per unit, and the allowance for rest periods and setup is .4 hours and .3 hours, respectively. What is the standard direct materials cost per unit produced? Round to two decimal places. Do not use a dollar sign. What is the standard direct labor price (rate) per unit? Round to two decimal places. What is the total standard direct labor cost? Round to two decimal places. Do not use a dollar sign.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applying International Financial Reporting Standards

Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise

3rd edition

730302121, 978-0730302124

More Books

Students also viewed these Accounting questions

Question

What is the shape of the exponential distribution?

Answered: 1 week ago