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Vaughn Manufacturing produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and
Vaughn Manufacturing produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $9 per hour, but a raise which will average $0.40 will go into effect soon. Payroll taxes are $0.90 per hour, and employee benefits average $1,80 per hour, Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct labor rate per hour is O $9.00 O $11.70 O $12.10 O $9.40
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