Question
Sell 190 cabinets at an average selling price of $3,750 each during 2024. Direct materials per cabinet are $530 per unit. The direct labor per
Sell 190 cabinets at an average selling price of $3,750 each during 2024.
Direct materials per cabinet are $530 per unit.
The direct labor per cabinet is 4.0 hours, and Walnut Grove pays $39.5/hour for this labor.
Factory overhead is calculated at 50% of direct labor.
**On March 1, a new cabinet division manager will be hired at a cost of $64,000. In addition to the new cabinet division manager, 2 new employees will be hired at an average wage of $24.00 per hour, employees work an average of 40 hours per week. Payroll taxes should be calculated at 16% of wages.**
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