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Multiple Choice Question 71 Vaughn Manufa tunng produces a roduct that requires

ID: 2557393 • Letter: M

Question

Multiple Choice Question 71 Vaughn Manufa tunng produces a roduct that requires 2.6 pounds o m ater als er unit. The a o ance or waste and Spo a e er unit s 3 ounds and 1 pounds espect e·The chase pr ce is er und ut a discount is usually taken. Freight costs are $0.5 per pound, and receiving and handling costs are S0.10 per pound. The hourly wage rate is S12 per hour, but a raise which will average S0.3 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 price per pound is $2.94 $3.60. $3.54 $3.00. Click if you would like to Show Work for this question: Question Attempts: 0 of 1 used SAVE FOR LATER SUDMIT ANSWER

Explanation / Answer

Standard direct materials price per pound = 3 per pound - 2% discount + Freight costs + Receiving and handling costs

= 3 - (3*2%) + 0.5 + 0.1

= 3.54