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PLEASE ANSWER ASAP NO NEED TO SHOW WORK WILL THUMBS UP!!!! Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards
PLEASE ANSWER ASAP NO NEED TO SHOW WORK WILL THUMBS UP!!!!
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 | Per unit | Cost | ||||
Materials | 2 lb. | 80.00 per lb. | ||||
Direct labor | ||||||
Item | Per unit | Cost | ||||
Labor | 15 min. | $7.00 per hr. | ||||
Predetermined overhead rate based on direct labor hours = $3.59 |
The January figures for purchasing, production, and labor are:
The company purchased 226,100 pounds of raw materials in January at a cost of 78 a pound. |
Production used 226,100 pounds of raw materials to make 114,000 units in January. |
Direct labor spent 18 minutes on each product at a cost of $6.90 per hour. |
Overhead costs for January totaled $33,112 variable and $74,000 fixed. |
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