Ask Question
26 August, 14:24

Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is. 3 pounds and. 1 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $.15 per pound, and receiving and handling costs are $.10 per pound. The hourly wage rate is $10.00 per hour, but a raise which will average $.25 will go into effect soon. Payroll taxes are $1.00 per hour, and fringe benefits average $2.00 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is. 2 hours and. 1 hours, respectively. The standard direct materials quantity per unit is a. 2.6 pounds. b. 2.7 pounds. c. 2.9 pounds. d. 3.0 pounds. 4. The standard direct labor hours per unit is

a. 1 hour.

b. 1.1 hours.

c. 1.2 hours.

d. 1.3 hours.

+4
Answers (1)
  1. 26 August, 14:42
    0
    standard direct materials quantity per unit = 3.00 Pounds

    so correct option is d. 3.0 pounds

    Direct Labor is = 1.3 hours

    correct option is d. 1.3 hours.

    Explanation:

    given data

    materials = 2.6 pounds

    waste = 0.3 pounds

    spoilage = 0.1 pounds

    discount = 2 %

    Freight costs = $.15 per pound

    handling costs = $.10 per pound

    wage rate = $10.00 per hour

    Payroll taxes = $1.00 per hour

    fringe benefits average = $2.00 per hour

    Standard production time = 1 hour per unit

    to find out

    standard direct materials quantity per unit and The standard direct labor hours per unit

    solution

    standard direct materials quantity per unit = Net Raw Material Required + waste + Spoilage ... 1

    standard direct materials quantity per unit = 2.6 + 0.3 + 0.10

    standard direct materials quantity per unit = 3.00 Pounds

    so correct option is d. 3.0 pounds

    and

    Direct Labor is = Net Hrs Required + Allowance + Rest

    Direct Labor is = 1 + 0.2 + 0.1

    Direct Labor is = 1.3 hours

    correct option is d. 1.3 hours.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is. 3 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers