The volume of the raw material required for a certain machine part is 2.02 cu. cm. The finished volume is 1.05 cu. cm. The time for machining each piece is 45 seconds for steel and 30 seconds for brass. The costs of steel is P32.50 per kg and the value of steel scrap is negligible. The cost the brass is P60 per kg and the value of brass scrap is P25 per kg. The wage of the operator is P40 per hr and the overhead cost of the machine is P50 per hour. The weight of steel and brass are 0.0081 and 0.0088 kg per cu. cm, respectively. How much is the total cost per piece of steel and brass. Which material will you recommend?

The volume of the raw material required for a certain machine part is 2.02 cu. cm. The finished volume is 1.05 cu. cm. The time for machining each piece is 45 seconds for steel and 30 seconds for brass. The costs of steel is P32.50 per kg and the value of steel scrap is negligible. The cost the brass is P60 per kg and the value of brass scrap is P25 per kg. The wage of the operator is P40 per hr and the overhead cost of the machine is P50 per hour. The weight of steel and brass are 0.0081 and 0.0088 kg per cu. cm, respectively. How much is the total cost per piece of steel and brass. Which material will you recommend?

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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