Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products
The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $6.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $20.00 per hour. Payroll costs are $4.00 per hour, and benefits are $5.00 per hour. How much is the direct materials standard cost per square foot?
A) $11.20
B) $10.20
C) $6.20
D) $6.00
C .C) Direct materials cost standard (per square foot) = Cost per square foot + Delivery costs
You might also like to view...
What is an in-kind donation?
a. donations of equity or value in a company instead of cash b. noncash donations of products c. giving through a third party instead of directly to those in need d. donations of time and effort instead of cash or products
Neutral messages can be appropriate for readers inside and outside the organization
Indicate whether the statement is true or false
Which method of stating the facts in a legal memorandum states the facts in the order in which they occur?
a. Chronologically b. By party c. According to the elements of a cause of action d. All of the above
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 8,000Variable costs per unit: Direct materials$37Direct labor$56Variable manufacturing overhead$4Variable selling and administrative expense$2Fixed costs: Fixed manufacturing overhead$312,000Fixed selling and administrative expense$448,000 There were no beginning or ending inventories. The absorption costing unit product cost was:
A. $93 per unit B. $136 per unit C. $97 per unit D. $194 per unit