A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $14 per hour. Payroll taxes are approximately 21% of wages. Benefits amount to $2 per hour. How much is the direct materials cost standard per square foot?
A) $9.40
B) $9.00
C) $16.00
D) $25.00
A) $9.40
Explanation: Direct materials cost standard (per square foot) = Cost per square foot + Freight-in cost
Direct materials cost standard (per square foot) = $9.00 + $0.40 = $9.40
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Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?
A. The manufacturer is likely to see little profit until the power of buyers improves. B. The company is likely to be very profitable as long as the threat to entry is low. C. This firm is an example of near-perfect competition. D. In this scenario, suppliers are likely to create and sell effective substitutes.
Last year, Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000, the balance in accounts payable decreased $25,000, and the balance in inventory increased $10,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on its statement of cash flows.Under the direct method, sales adjusted to a cash basis would be:
A. $295,000 B. $355,000 C. $345,000 D. $405,000
The following balance sheet information is provided for Duke Company for Year 2: Assets Cash$5,400 Accounts receivable 15,500 Inventory 18,000 Prepaid expenses 1,600 Plant and equipment, net of depreciation 20,200 Land 19,950 Total assets$80,650 Liabilities and Stockholders' Equity Accounts payable$4,500 Salaries payable 11,500 Bonds payable (due in ten years) 19,000 Common stock, no par 30,000 Retained earnings 15,650 Total liabilities and stockholders' equity$80,650 ?What is the company's current ratio? (Round your answer to 2 decimal places.)
A. 1.31 B. 3.79 C. 1.16 D. 2.53
Answer the following statements true (T) or false (F)
1. Contingencies such as size, technology, and environment do not necessarily determine an organization's structure. 2. Organizational strategy influences both the contingencies of structure and the structure itself. 3. If a company's strategy is to compete through innovation, a more organic structure is preferred. 4. If a company chooses a low-cost strategy, an organic structure is preferred because it maximizes production and service efficiency. 5. ''Structure follows strategy'' means that organizational designers should base their choice of structure on the implications of their strategic decisions.