Crane Company produces a product that requires 3.90 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.40 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, per hour, and employee benefits average $2.40 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 quantity per unit is O 4.30 pounds. O.3.90 pounds. O4.40 pounds. 4.00 pounds.
Crane Company produces a product that requires 3.90 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.40 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, per hour, and employee benefits average $2.40 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 quantity per unit is O 4.30 pounds. O.3.90 pounds. O4.40 pounds. 4.00 pounds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Crane Company produces a product that requires 3.90 pounds of materials per unit. The allowance for waste and spoilage per unit is
0.40 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are
$0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will
average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, per hour, and employee benefits average $2.40 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 quantity per unit is
O 4.30 pounds.
O.3.90 pounds.
O4.40 pounds.
4.00 pounds.
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