Custard's Bakery produces a pie that requires 2.6 pounds of fruit per pie. The allowance for waste and spoilage per pie is .2 pounds and .1 pounds, respectively. The purchase price of fruit is $2 per pound, but a 4% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.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 pie, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct materials price per pound is: A. $2.00 B. $2.13 C. $2.09 D. $2.17 The standard direct materials quantity per unit is: A. 2.7 pounds. B. 2.6 pounds. C. 3.0 pounds. D. 2.9 pounds.
Custard's Bakery produces a pie that requires 2.6 pounds of fruit per pie. The allowance for waste and spoilage per pie is .2 pounds and .1 pounds, respectively. The purchase price of fruit is $2 per pound, but a 4% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.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 pie, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct materials price per pound is: A. $2.00 B. $2.13 C. $2.09 D. $2.17 The standard direct materials quantity per unit is: A. 2.7 pounds. B. 2.6 pounds. C. 3.0 pounds. D. 2.9 pounds.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
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Custard's Bakery produces a pie that requires 2.6 pounds of fruit per pie. The allowance for waste and spoilage per pie is .2 pounds and .1 pounds, respectively. The purchase price of fruit is $2 per pound, but a 4% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and
The standard direct materials price per pound is:
A. $2.00
B. $2.13
C. $2.09
D. $2.17
The standard direct materials quantity per unit is:
A. 2.7 pounds.
B. 2.6 pounds.
C. 3.0 pounds.
D. 2.9 pounds.
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