P. J.'s Jump Ropes is planning to produce 2,000 boxes of jump ropes during June. Each box of jump ropes (1 unit) requires 75 feet of rope and 0.50 hours of direct labor. Rope costs $0.12 per foot and employees of the company are paid $11.00 per hour. Manufacturing overhead is applied at a rate of 150% of direct labor costs. P. J.'s has 15,000 feet of rope in the beginning inventory and wants to have 20,000 feet of rope in the ending inventory. How many feet of rope should P. J.'s Jump Ropes plan to buy during June?

P. J.'s Jump Ropes is planning to produce 2,000 boxes of jump ropes during June. Each box of jump ropes (1 unit) requires 75 feet of rope and 0.50 hours of direct labor. Rope costs $0.12 per foot and employees of the company are paid $11.00 per hour. Manufacturing overhead is applied at a rate of 150% of direct labor costs. P. J.'s has 15,000 feet of rope in the beginning inventory and wants to have 20,000 feet of rope in the ending inventory. How many feet of rope should P. J.'s Jump Ropes plan to buy during June?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
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