5th Edition

ISBN: 8220103613811

Author: TIETZ

Publisher: PEARSON

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Textbook Question

Chapter 11, Problem 11.34BE

Calculate the standard cost per unit (Learning Objective 1)

City Grow Products is a manufacturer of large flower pots for urban settings. The company has these standards:

Direct materials (resin)	9.2 pounds per pot at a cost of $4.55 per pound
Direct labor	1.6 hours at a cost of $16.60 per hour
Standard variable manufacturing overhead	$3.60 per direct labor hour
Predetermined fixed manufacturing overhead rate	$6.50 per direct labor hour

City Grow allocates variable and fixed manufacturing overhead to production based on standard direct labor hours.

Requirements

1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.
2. Determine the standard cost of one flower pot.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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Chapter 11, Problem 11.33BE

Chapter 11, Problem 11.35BE

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Chapter 11 Solutions

EBK MANAGERIAL ACCOUNTING

Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QC Ch. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QC Ch. 11 - (Learning Objective 7Appendix) Which of the...

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Solution Summary: The author calculates the standard cost of direct materials, direct labor, variable manufacturing overhead, and fixed production overhead per pot.

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