Waterway Industries 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 $14 per hour, but a raise which will average $0.20 will go into effect soon. Payroll taxes are $1.40 per hour, and employee benefits average $2.80 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 $18.40. O $14.20. O $14.00. O $18.20.
Waterway Industries 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 $14 per hour, but a raise which will average $0.20 will go into effect soon. Payroll taxes are $1.40 per hour, and employee benefits average $2.80 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 $18.40. O $14.20. O $14.00. O $18.20.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Waterway Industries 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 $14 per hour, but a raise which will
average $0.20 will go into effect soon. Payroll taxes are $1.40 per hour, and employee benefits average $2.80 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
$18.40.
$14.20.
$14.00.
O $18.20.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b038a8b-53d9-4c60-ba0c-2200dc11f29a%2F3044005a-8d61-4102-ae58-a8a949095d6e%2F1j41ap_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Waterway Industries 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 $14 per hour, but a raise which will
average $0.20 will go into effect soon. Payroll taxes are $1.40 per hour, and employee benefits average $2.80 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
$18.40.
$14.20.
$14.00.
O $18.20.
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