Sheridan Company produces a product that requires 2.6 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 is $12 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.4 per hour. Standard production time is 1.5 hour per unit and the allowance for rest periods and setup is 0.70 hours and 0.10 hours. respectively. The standard direct labor rate per hour is
Sheridan Company produces a product that requires 2.6 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 is $12 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.4 per hour. Standard production time is 1.5 hour per unit and the allowance for rest periods and setup is 0.70 hours and 0.10 hours. respectively. The standard direct labor rate per hour is
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
