Marigold Corp. 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 $2 per pound, but a 25% 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 $18 per hour, but a raise which will average $0.30 will go into effect soon Payroll taxes are $1.80 per hour, and employee benefits average $3.60 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 labor rate per hour is O$18.00, O$23.40 Ⓒ$23.70. $18.30
Marigold Corp. 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 $2 per pound, but a 25% 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 $18 per hour, but a raise which will average $0.30 will go into effect soon Payroll taxes are $1.80 per hour, and employee benefits average $3.60 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 labor rate per hour is O$18.00, O$23.40 Ⓒ$23.70. $18.30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold Corp: 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 $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 $18 per hour, but a raise which will
average $0.30 will go into effect soon. Payroll taxes are $1.80 per hour, and employee benefits average $3.60 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 labor rate per hour is
O$18.00,
O$23.40
$23.70.
O$18.30
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