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23 March, 12:20

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pounds; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound, and receiving and handling costs are $0.10 per pound. The standard direct materials price per pound is ___.

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  1. 23 March, 12:25
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    Total = $4.33

    Explanation:

    Giving the following information:

    Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pounds; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound and receiving and handling costs are $0.10 per pound.

    Purchase price = 4*0.98 = 3.92

    Allowance for waste = (0.03*3.92) = 0.1176

    Allowance for spoilage = (0.01*3.92) = 0.0392

    Freight = 0.15

    Receiving and handling = 0.10

    Total = $4.33
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