Brief Exercise 25-2 Your answer is partially correct. Try again. Tang Company ac

Question

Brief Exercise 25-2 Your answer is partially correct. Try again. Tang Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price-net purchase price $3.29, freight-in $0.45, and receiving and handling $0.32. (2) Quantity-required materials 3.70 pounds, allowance for waste and spoilage 0.70 pounds Compute the following.(Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per gallon. (b) Standard direct materials quantity per gallon. (c) Total standard materials cost per gallon. 4.06 4.4 pounds 17.9

Explanation / Answer

Answer

25-2

C

Total Standard Material Cost per gallon = Standard direct materials price per gallon * Standard direct materials quantity per gallon

= $4.06 * 4.4

Total Standard Material Cost per gallon = 17.86

You rounded your answer to 1 decimal place but question requires rounding off upto 2 decimal places.

25-3

a.

Standard direct labor rate per hour = Wage rate + Payroll Taxes + Fringe benefits

= 16.08 + 0.5 + 1.78

Standard direct labor rate per hour = 18.36

b.

Standard direct labor hour per gallon = Actual Production Time + Rest Period + Setup and downtime

= 1.5 + 0.32 + 0.26

Standard direct labor rate per hour = 2.08 hours

c.

Standard labor cost per gallon = Standard direct labor rate per hour * Standard direct labor hour per gallon

= 18.36 * 2.08

Standard labor cost per gallon = 38.19

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