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The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of

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The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at peak efficiency, a skilled worker will take 17 hours to produce assemble one massage chair and 20 minutes to package one massage chair. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 1.0 hr to adjust the tools, re-oil relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $40 per hour which excludes on-costs of 20 per cent. Question 1 If the company adopts practical standards, what is the standard labour cost for one massage chair? Round to 2 dec places if required. $880 Your last answer was interpreted as follows: 880 Question 2 Assume that for every 87 massage chairs assembled, 40 massage chairs will be defective and will have to discarded. If the company adopts practical standards, recalculate the standard labour cost for one massage chair. Round to 2 dec places if required. $19321 Your last answer was interpreted as follows: 1982.7 The following information relates to Question 1. Question 1 Super Electronics Ltd manufactures computers and notebooks. The company has the two support departments that provide services to two manufacturing departments. The following information is available. Manufacturing Departments Machining Direct labour hours Usage of Personnel (labour hours) Usage of Computing (labour hours) Departmental costs: Direct material ($) 500, 000 800, 000 Direct labour ($) 120, 000 700, 000 Manufacturing overhead ($) 560, 000 350, 000 1, 180, 000 1, 850, 000 Support Departments Personnel Computing 2, 500 Direct labourand materials (Variable) ($) 140,000 150,000 Fixed overhead ($) 50, 000 200, 000 Total ($) 190, 000 350, 000 Calculate the plantwide overhead rate if Super Electronics uses direct labour hours to assign overhead to products. Please round your answer to 2 dec places

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