question 1

Concord Corporation produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $0.40 per pound, and receiving and handling costs are $0.05 per pound, The hourly wage rate is $14 per hour, but a raise which will average $0,30 will go into effect soon. Payroll taxes are $1.40 per hour, and employee benefits average $2.80 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials price per pound is \begin{tabular}{|} $2.94 \\ $3.00 \\ $3.39 \\ $3.45 \\ \hline \end{tabular}