Corporation produces a product that requires 2.60 pounds of materials Swifty and 0.10 pounds, respectively. The purchase price is $4 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.03 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 Ⓒ$4.45. $4.53. $4.00. $3.92.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Swifty Corporation 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 $4 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and
receiving and handling costs are $0.03 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
Ⓒ$4.45.
$4.53.
$4.00.
$3.92.
Transcribed Image Text:Swifty Corporation 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 $4 per pound, but a 2% discount is usually taken. Freight costs are $0.50 per pound, and receiving and handling costs are $0.03 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 Ⓒ$4.45. $4.53. $4.00. $3.92.
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