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Chapter 23 Handout Answers ( Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedarwood is $8.00 per square foot from the supplier. Delivery costs are 50.25 per square foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour, and benefits are $6.00 per hour. How much is the direct materials standard cost per square foot? A) $14.25 B) $11.85 C) $8.25 D) $8.00 16 Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Seaworthy uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 4 pounds per unit: $6 per pound Direct labor: 2 hours per unit: $19 per hour During the first quarter, Seaworthy produced 2000 units of this product. Actual direct materials and direct labor costs were $66,000 and $326,000, respectively. For the purpose of preparing the flexible budget, what is the total standard direct labor cost at a production volume of 2000 units? A) 38,000 B) $66,000 C) $76,000 D) $326,000 7 Oceanside Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Oceanside uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pound per unit; $12 per pound Direct labor: 4 hours per unit; 518 per hour Oceanside produced 3000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7500 pounds of direct materials and actual total materials costs were $98,400