Coronado Industries produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.30 per hour, and employee benefits average $2.60 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials price per pound is $3.00. $3.57. $2.94. O $3.51.
Coronado Industries produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.30 per hour, and employee benefits average $2.60 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials price per pound is $3.00. $3.57. $2.94. O $3.51.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Coronado Industries produces a product that requires 2.60 pounds of materials per unit. The allowance for waste
and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $3 per pound, but a 2%
discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.07 per pound.
The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are
$1.30 per hour, and employee benefits average $2.60 per hour. Standard production time is 1 hour per unit, and the
allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials price
per pound is
$3.00.
$3.57.
$2.94.
O $3.51.
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