Data table Direct materials (resin). Direct labor.. Standard variable manufacturing overhead rate..... $3.40 per direct labor hour Predetermined fixed manufacturing overhead rate... $6.00 per direct labor hour 9.6 pounds per pot at a cost of $4.55 per pound 1.0 hour at a cost of $15.80 per hour Grow Right allocates variable and fixed manufacturing overhead to production based on standard direct labor hours.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Requirements**

1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.

2. Determine the standard cost of one flower pot.
Transcribed Image Text:**Requirements** 1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. 2. Determine the standard cost of one flower pot.
### Data Table

| Item                                             | Quantity/Rate                                       |
|--------------------------------------------------|-----------------------------------------------------|
| **Direct materials (resin)**                     | 9.6 pounds per pot at a cost of $4.55 per pound     |
| **Direct labor**                                 | 1.0 hour at a cost of $15.80 per hour               |
| **Standard variable manufacturing overhead rate** | $3.40 per direct labor hour                         |
| **Predetermined fixed manufacturing overhead rate** | $6.00 per direct labor hour                         |

**Explanation:**

Grow Right allocates variable and fixed manufacturing overhead to production based on standard direct labor hours.

This data table outlines the costs associated with producing pots, detailing the cost of materials, labor, and overheads necessary for manufacturing. The cost calculations help in budgeting and assessing cost-effectiveness in production processes.
Transcribed Image Text:### Data Table | Item | Quantity/Rate | |--------------------------------------------------|-----------------------------------------------------| | **Direct materials (resin)** | 9.6 pounds per pot at a cost of $4.55 per pound | | **Direct labor** | 1.0 hour at a cost of $15.80 per hour | | **Standard variable manufacturing overhead rate** | $3.40 per direct labor hour | | **Predetermined fixed manufacturing overhead rate** | $6.00 per direct labor hour | **Explanation:** Grow Right allocates variable and fixed manufacturing overhead to production based on standard direct labor hours. This data table outlines the costs associated with producing pots, detailing the cost of materials, labor, and overheads necessary for manufacturing. The cost calculations help in budgeting and assessing cost-effectiveness in production processes.
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