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There are 3 parts that make up a small toy car. Assembly takes 5 minutes. One in every 50 motors is defective and one

 

There are 3 parts that make up a small toy car. Assembly takes 5 minutes. One in every 50 motors is defective and one in every 100 wheels is defective. You can determine if a part is defective before assembly and defective parts are thrown away. Each assembly worker gets paid $15.00/hour. The employees get no benefits. You can assume that the employees are at a 25% tax rate. All other rates are at the normal level. Employees are paid only when there is work to do. Parts List: Quantity Part 1 Body Wheels Motor $5.00 4 1 Cost $ 1.00 $ 0.40 The costs to operate the factory include rent on the building and equipment of $4000/month and salary for a supervisor of $3000/month (gross pay, so you'd need to calculate cost to company). Production is 100,000 per year. 1 What is the cost of material for one toy car? 2 What is the direct labor cost to make one toy car? 3 What is the fully allocated overhead cost per part? 4 What is the fully allocated total cost of a toy car?

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SOLUTION 1 The cost of material for one toy car can be calculated as follows Cost of body 100 Cost o... blur-text-image

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