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Cambridge Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is.2 pounds and .4 pounds, respectively. The purchase price is $4 per pound, but a 3% discount is usually taken. Freight costs are $.08 per pound, and receiving and handling costs are $.04 per pound. The hourly wage rate is $22.00 per hour, but a 5% raise will go into effect soon. Payroll taxes are $1.40 per hour, and fringe benefits average $1.90 per hour. Standard production time is 1.5 hours per unit, and the allowance for rest periods and setup is .4 hours and .3 hours, respectively. What is the standard direct materials cost per unit produced (total DM cost)? type your answer... Round to two decimal places. Do not use a dollar sign. What is the standard direct labor price (rate) per unit? type your answer... Round to two decimal places. What is the total standard direct labor cost? type your answer... Round to two decimal places. Do not use a dollar sign.

Cambridge Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is.2 pounds and .4 pounds, respectively. The purchase price is $4 per pound, but a 3% discount is usually taken. Freight costs are $.08 per pound, and receiving and handling costs are $.04 per pound. The hourly wage rate is $22.00 per hour, but a 5% raise will go into effect soon. Payroll taxes are $1.40 per hour, and fringe benefits average $1.90 per hour. Standard production time is 1.5 hours per unit, and the allowance for rest periods and setup is .4 hours and .3 hours, respectively. What is the standard direct materials cost per unit produced (total DM cost)? type your answer... Round to two decimal places. Do not use a dollar sign. What is the standard direct labor price (rate) per unit? type your answer... Round to two decimal places. What is the total standard direct labor cost? type your answer... Round to two decimal places. Do not use a dollar sign.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cambridge Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .2 pounds and .4 pounds, respectively. The purchase price is $4 per pound, but a 3% discount is usually taken. Freight costs are $.08 per pound, and receiving and handling costs are $.04 per pound. The hourly wage rate is $22.00 per hour, but a 5% raise will go into effect soon. Payroll taxes are $1.40 per hour, and fringe benefits average $1.90 per hour. Standard production time is 1.5 hours per unit, and the allowance for rest periods and setup is .4 hours and .3 hours, respectively. What is the standard direct materials cost per unit produced (total DM cost)? type your answer... Round to two decimal places. Do not use a dollar sign. What is the standard direct labor price (rate) per unit? type your answer... Round to two decimal places. What is the total standard direct labor cost? type your answer... Round to two decimal places. Do not use a dollar sign.
Transcribed Image Text:Cambridge Corporation produces a product that requires 3.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .2 pounds and .4 pounds, respectively. The purchase price is $4 per pound, but a 3% discount is usually taken. Freight costs are $.08 per pound, and receiving and handling costs are $.04 per pound. The hourly wage rate is $22.00 per hour, but a 5% raise will go into effect soon. Payroll taxes are $1.40 per hour, and fringe benefits average $1.90 per hour. Standard production time is 1.5 hours per unit, and the allowance for rest periods and setup is .4 hours and .3 hours, respectively. What is the standard direct materials cost per unit produced (total DM cost)? type your answer... Round to two decimal places. Do not use a dollar sign. What is the standard direct labor price (rate) per unit? type your answer... Round to two decimal places. What is the total standard direct labor cost? type your answer... Round to two decimal places. Do not use a dollar sign.
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