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Reference: Accounting for Decision Making and Control 10th Edition by Jerold Zimmerman Please Help me with this practice question Pluton makes particular plastics for sale
Reference: Accounting for Decision Making and Control 10th Edition by Jerold Zimmerman
Please Help me with this practice question
Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 1007pound drum of one particular product called Xentra appears below: Qty Cost Chemical Xeta, gals 15 $25.69 Chemical Thenta, gals 35 $27.56 Base material, pound 26 $ 1.66 lee-1b lined drum 1 $51.83 Variable factory overhead is estimated to be $1,200.000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21.000 machine hours per month. The preparation of one loo-pound batch of Xentra needs ten minutes oi direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent oi the fixed manufacturing overhead is laborerelated costs and the balance is machine-related costs. Assuming normal production levels, what is the amount of direct labor and overhead per drum? Multiple Choice 0 $1916? 0 $287.40 O $311.67 O $315.67 O None of the choices are correctStep by Step Solution
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