Business, 21.05.2020 23:59 jordeng4354
Swifty Corporation Produces a product that requires 2.9 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.2 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.1 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively. The standard direct materials quantity per unit is:.
a. 3.1 pounds.
b. 3.4 pounds.
c. 3.2 pounds.
d. 2.9 pounds.
Answers: 3
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Swifty Corporation Produces a product that requires 2.9 pounds of materials per unit. The allowance...
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