DMA, Inc., processes corn into corn starch and corn syrup. The company's productivity and cost standards follow: 1. From every bushel of corn processed, 13 pounds of starch and 5 pounds of syrup should be produced. 2. Standard direct labor and variable overhead total $0.57 per bushel of corn processed. 3. Standard fixed overhead (the predetermined fixed overhead application rate) is $0.38 per bushel processed. Required: Calculate the standard absorption cost per pound for the starch and syrup produced from the processing of 13,000 bushels of corn if the average cost per bushel is $1.93.
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- Ship Co. produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per hour. Overhead is applied at the rate of $9 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volumeproducts (a valve) is as follows: Direct materials (7 lbs. @ $5.40) $37.80Direct labor (1.75 hrs. @ $18) 31.50Variable overhead (1.75 hrs. @ $4.00) 7.00Fixed overhead (1.75 hrs. @ $3.00) 5.25Standard unit cost $81.55During the year, Petrillo had the following activity related to valve production:a. Production of valves totaled 20,600 units.b. A total of 135,400 pounds of direct materials was purchased at $5.36 per pound.c. There were 10,000 pounds of direct materials in beginning inventory (carried at $5.40 perpound). There was no ending inventory.d. The company used 36,500 direct labor hours at a total cost of $656,270.e. Actual fixed overhead totaled $110,000.f. Actual variable overhead totaled $168,000. Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year.…Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
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- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.60-gallon can of chemical call for 1.30 gallons of material and 1.60 hours of labor. (1.30 gallons of material are needed to produce a 0.60-gallon can of product due to evaporation.) The standard cost per gallon of material is $7. The standard cost per hour for labor is $10. Overhead is applied at the rate of $7.25 per can. Expected production is 19,100 cans with fixed overhead per year of $23,875 and variable overhead of $6 per unit (a 0.60-gallon can). During 2021, 24,600 cans were produced; 32,000 gallons of material were purchased at a cost of $250,880; 27,500 gallons of material were used in production. The cost of direct labor incurred in 2021 was $332,264 based on an average actual wage rate of $8.73 per hour. Actual overhead for 2021 was $236,500. (a) Your answer is correct. Determine the standard cost per unit. (Round answer to 2 decimal places,…Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 15 Product U1 Direct Labor- Expected Hours Per Production Unit 700 7.0 200 4.0 Activity Cost Pools Labor-related Machine setups Order size Product 15 Product U1 Total direct labor-hours The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 261.60 $ 121.60 Activity Measures DLHS setups MHS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity, Expected Activity Total Direct Labor- Estimated Overhead Cost $ 268,698 Hours 4,900 800 5,700 37,324 633,895 $939,917 Product 15 Product U1 4,900 300 4,900 800 400 4,800 Total 5,700 700 9,700