Sunland Company 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 $8 per hour, but a raise which will average $0.40 will go into effect soon. Payroll taxes are $0.80 per hour, and employee benefits average $1.60 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 $10.80. O $8.00. O $10.40. O $8.40.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Sunland Company 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 $8 per hour, but a raise which will
average $0.40 will go into effect soon. Payroll taxes are $0.80 per hour, and employee benefits average $1.60 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 $10.80.
O $8.00.
O $10.40.
O $8.40.
Transcribed Image Text:Sunland Company 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 $8 per hour, but a raise which will average $0.40 will go into effect soon. Payroll taxes are $0.80 per hour, and employee benefits average $1.60 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 $10.80. O $8.00. O $10.40. O $8.40.
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