Harmon Household Products, Inc., manufactures a number of consumer items for gen
ID: 2344664 • Letter: H
Question
Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 3,400 chopping boards using 2,380 board feet of hardwood. The hardwood cost the company $18,088.
The company
Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 3,400 chopping boards using 2,380 board feet of hardwood. The hardwood cost the company $18,088.
Explanation / Answer
According to the standards, what cost for wood should have been incurred to make 3,400 chopping blocks? 3400*0.65*8 = $17680 Answer: $17,680 How much greater or less is this than the cost that was incurred? Actual – standard = 18088 – 17680 = 408 this is 408 unfavorable Answer: $408 U
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