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Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particular product called Xentra appears below: Qty Cost 15 $ $ $ 1 $ 51.83 Chemical Xeta, gals Chemical Thenta, gals 35 Base material, pound 20 100-lb lined drum 25.00 27.50 1.00 Variable factory overhead is estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs. Assuming normal production levels, what is the full cost per drum? Multiple Choice $1,725.00 $1,700.73 $1,625.00 $1,609.00 None of the choices are correct

Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particular product called Xentra appears below: Qty Cost 15 $ $ $ 1 $ 51.83 Chemical Xeta, gals Chemical Thenta, gals 35 Base material, pound 20 100-lb lined drum 25.00 27.50 1.00 Variable factory overhead is estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs. Assuming normal production levels, what is the full cost per drum? Multiple Choice $1,725.00 $1,700.73 $1,625.00 $1,609.00 None of the choices are correct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particular product called Xentra appears below: Qty Cost Chemical Xeta, gals 15 $ Chemical Thenta, gals 35 $ Base material, pound 20 $ 100-lb lined drum 1 $ 25.00 27.50 1.00 51.83 Variable factory overhead is estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs. Assuming normal production levels, what is the full cost per drum? Multiple Choice $1,725.00 $1,700.73 $1,625.00 $1,609.00 None of the choices are correct
Transcribed Image Text:Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particular product called Xentra appears below: Qty Cost Chemical Xeta, gals 15 $ Chemical Thenta, gals 35 $ Base material, pound 20 $ 100-lb lined drum 1 $ 25.00 27.50 1.00 51.83 Variable factory overhead is estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs. Assuming normal production levels, what is the full cost per drum? Multiple Choice $1,725.00 $1,700.73 $1,625.00 $1,609.00 None of the choices are correct
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