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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
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 peas efficiency, a skilled worker will take 25 hours to produce assemble one massage chair and 20 minutes to package one massage chalt. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 3.0 hr to adjust the tools. Teoll relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $10 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 Question 2 Assume that for every 85 massage chairs assembled, 30 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. 810 Your last answer was interpreted as follows:0
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