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Accounting
Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 250 chainsaws, using 1,125 machine hours in 50 batches. What is the total manufacturing cost for one chainsaw?

Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 250 chainsaws, using 1,125 machine hours in 50 batches. What is the total manufacturing cost for one chainsaw?

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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What is the total manufacturing cost for one chainsaw?

Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 250 chainsaws, using 1,125 machine hours in 50 batches. What is the total manufacturing cost for one chainsaw?
Transcribed Image Text:Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 250 chainsaws, using 1,125 machine hours in 50 batches. What is the total manufacturing cost for one chainsaw?
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