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Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5 , 0 0 0 cases of lubricant. Each case
Slick Corporation is a small producer of synthetic motor oil. During May, the company produced cases of lubricant. Each case contains quarts of synthetic oil. To achieve this level of production, Slick purchased and used gallons of direct materials at a cost of $ It also incurred average direct labor costs of $ per hour for the hours worked in May by its production personnel. Manufacturing overhead for the month totaled $ of which $ was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows.
tableDirect materials standard price,$ per gallonStandard quantity allowed per case, gallonsDirect labor standard rate, per hourStandard hours allowed per case, direct labor hoursFixed overhead budgeted,$ per monthNormal level of production, cases per monthVariable overhead application rate,$ per caseFixed overhead application rate catas
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