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Sunland Company produces a product that requires 26 pounds of materials per unit. The allowance for waste and spoilage per units 0.3 pounds and 0.1
Sunland Company produces a product that requires 26 pounds of materials per unit. The allowance for waste and spoilage per units 0.3 pounds and 0.1 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken Freight costs are $02 per pound and receiving and handling costs are $0.05 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.3 will go into effect soon. Payroll taxes are $1. 20 per hour and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup iso 2 hours and 0.1 hours, respectively The standard direct materials price per pound is O $3.25 O $2.94 O $3.00 O $3.19
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