Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Item Materials Materials Item Labor Per unit 2 lb. Direct labor Cost 80.00¢ per lb. Per unit Cost 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $3.83 The January figures for purchasing, production, and labor are: The company purchased 230,100 pounds of raw materials in January at a cost of 78¢ a pound. Production used 230,100 pounds of raw materials to make 116,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $41,342 variable and $75,000 fixed. Answer the following questions about standard costs.
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Item Materials Materials Item Labor Per unit 2 lb. Direct labor Cost 80.00¢ per lb. Per unit Cost 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $3.83 The January figures for purchasing, production, and labor are: The company purchased 230,100 pounds of raw materials in January at a cost of 78¢ a pound. Production used 230,100 pounds of raw materials to make 116,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $41,342 variable and $75,000 fixed. Answer the following questions about standard costs.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 9PB: Ribcos labor cost information for making its only product for March is as follows: A. What is the...
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