Question
Use the information provided to calculate standard costs: To make one switch it takes 17 feet of plastic-coated copper wire and 0.4 pounds of plastic
Use the information provided to calculate standard costs:
To make one switch it takes 17 feet of plastic-coated copper wire and 0.4 pounds of plastic material. The plastic material can usually be purchased for $18 per pound, and the wire costs $2.06 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.3 hours. These workers are paid $29 per hour. The second type of labor is finishing, which takes 2.8 hours. These workers are paid $27 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.96 per labor hour. The fixed overhead rate is $14.59 per hour.
What is the total standard cost for direct labor? Round to the nearest penny, two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started