General accounting Western Products plans to produce 2,000 units in 2024.Each unit requires:.•4.2 pounds of materials at $6.50 per pound0.75 hours of labor at $15.00 per hour• Overhead rate is 60% of direct laborCalculate:a) Budgeted amounts for materials, labor, and overheadb) Standard cost per unit (round to 2 decimal places)

Step 1: Define Budgeted Amounts and Standard Cost per Unit1Budgeted Amounts:The budgeted amounts are…

Answered: Western Products plans to produce 2,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 7EB: Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years...

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Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…

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