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24 December, 15:59

Bonita Industries produces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.5 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.

The standard direct materials quantity per unit is

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  1. 24 December, 16:03
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    3.1 pounds

    Step-by-step explanation:

    Data provided for calculating the direct materials quantity per unit is here below:-

    Quantity required per unit = 2.5 pounds

    Allowance for waste = 0.5 pounds

    Allowance for spoilage = 0.1 pounds

    The calculation of standard direct materials quantity per unit is is shown below:-

    Standard materials quantity per unit = Quantity required per unit + Allowance for waste + Allowance for spoilage

    = 2.5 pounds + 0.5 pounds + 0.1 pounds

    = 3.1 pounds

    Therefore for calculating the standard direct materials quantity per unit we simply added the quantity required per unit, allowance for waste and allowance for spoilage.
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