Use the information provided to create a
The plastic material can usually be purchased for $20.00 per pound, and the wire costs $2.50 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 2 hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed overhead rate is $15.60 per hour.
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Principles of Accounting Volume 2
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- Use the following information to create a standard cost card for production of one photography drone from Drone Experts. To make one drone it takes 2 pounds of plastic material. The material can usually be purchased for $25.00 per pound. The labor necessary to build a drone consists of two types. The first type of labor is assembly, which takes 10.5 hours. These workers are paid $21.00 per hour. The second type of labor is finishing, which takes 7 hours. These workers are paid $25.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.00 per labor hour. The fixed overhead rate is $16.00 per hour.arrow_forwardBox Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?arrow_forwardBox Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?arrow_forward
- Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?arrow_forwardUse the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and 0.5 pounds of plastic material. The plastic material can usually be purchased for $20.00 per pound, and the wire costs $2.50 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 2 hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed overhead rate is $15.60 per hour. Round to the penny, two decimal places. Direct Materials Plastic-coated copper Plastic material Direct Labor Assembly Finish Manufacturing Overhead Variable overhead Fixed overhead Standard cost Standard Quantity Standard cost card Standard Quantity Standard Cost per Measurement Unit feet…arrow_forwardUse the information provided to calculate standard costs: To make one switch it takes 18 feet of plastic-coated copper wire and 0.6 pounds of plastic material. The plastic material can usually be purchased for $16 per pound, and the wire costs $2.09 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27 per hour. The second type of labor is finishing, which takes 2.7 hours. These workers are paid $27 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.46 per labor hour. The fixed overhead rate is $14.72 per hour. What is the total standard cost? Round to the nearest penny, two decimal places.arrow_forward
- Use the information provided to calculate standard costs: To make one switch it takes 17 feet of plastic-coated copper wire and 0.2 pounds of plastic material. The plastic material can usually be purchased for $18 per pound, and the wire costs $2.93 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.8 hours. These workers are paid $29 per hour. The second type of labor is finishing, which takes 2.1 hours. These workers are paid $27 per hour. Overhead is applied using labor hours. The variable overhead rate is $14 per labor hour. The fixed overhead rate is $14.25 per hour. What is the total standard cost for direct labor? Round to the nearest penny, two decimal places.arrow_forwardUse the information provided to calculate standard costs: To make one switch it takes 17 feet of plastic-coated copper wire and 0.9 pounds of plastic material. The plastic material can usually be purchased for $17 per pound, and the wire costs $2.67 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.3 hours. These workers are paid $26 per hour. The second type of labor is finishing, which takes 2.2 hours. These workers are paid $28 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.39 per labor hour. The fixed overhead rate is $14.94 per hour. What is the total standard cost for direct materials? Round to the nearest penny, two decimal places.arrow_forwardUse the information provided to calculate standard costs: To make one switch it takes 19 feet of plastic-coated copper wire and 0.3 pounds of plastic material. The plastic material can usually be purchased for $16 per pound, and the wire costs $2.93 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.1 hours. These workers are paid $29 per hour. The second type of labor is fınishing, which takes 3.0 hours. These workers are paid $28 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.46 per labor hour. The fixed overhead rate is $15.52 per hour, What is the total standard cost for direct labor? Round to the nearest penny, two decimal places.arrow_forward
- Use the information provided to calculate standard costs: To make one switch it takes 19 feet of plastic-coated copper wire and 0.8 pounds of plastic material. The plastic material can usually be purchased for $20 per pound, and the wire costs $2.12 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.1 hours. These workers are paid $27 per hour. The second type of labor is finishing, which takes 2.4 hours. These workers are paid $28 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.25 per labor hour. The fixed overhead rate is $15.26 per hour. What is the total standard cost for manufacturing overhead? Round to the nearest penny, two decimal places.arrow_forwardUse the information provided to calculate standard costs: To make one switch it takes 15 feet of plastic-coated copper wire and 0.4 pounds of plastic material. The plastic material can usually be purchased for $19 per pound, and the wire costs $2.68 per foot. The labor necessary to assemble a switch consists of two types. The fırst type of labor is assembly, which takes 3.7 hours. These workers are paid $29 per hour. The second type of labor is finishing, which takes 3.0 hours. These workers are paid $25 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.06 per labor hour. The fixed overhead rate is $14.70 per hour. What is the total standard cost for direct materials? Round to the nearest penny, two decimal places.arrow_forwardPlata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs: Setting up equipment $ 3,000 Machining 19,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production. Elegant Fina Direct labor $9,000 $3,000 Direct materials $3,000 $3,000 Units 3,000 3,000 Machine hours 500 4,500 Setup hours 100 100 Required Calculate the consumption ratios for each activity. Round your answers to one decimal place. Elegant Fina Machining fill in the blank 2 fill in the blank 3 Setups fill in the blank 4 fill in the blank 5 a. Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the…arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College