Chapter 9 additional Example

Chapter 9 additional Example - rejects is .11 lb. The...

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Chapter 9 additional Example How do the standards get set exactly? Macon is charged w/ setting the standards (off of which variances will be calculated later) for one of the many products he, Carter and Luci make. This product requires a raw material that is sold by the supplier for $14.00 a pound but since they took accounting 225 and know that cash is king, they take advantage of the 3/10 net 30 terms offered by the supplier but they are responsible for the shipping costs which are $2.10 per lb of raw material. Each product requires 1.3 pounds of material but history has told them to allow .09 lbs for waste and the allowance for
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Unformatted text preview: rejects is .11 lb. The average DL rate is $10.00 per hour and employment taxes are 9% of the base pay while fringe benefits run $1.10 per DLH. This product requires .62 hours to make and they allow .03 hours for breaks and personal needs as well as .10 DLH for reworks and general factory clean up. VMOH is charged to the product at a rate of $3.00 per DLH worked on each product. Using this information, find: a. The standard price per pound of material b. The standard amount of material in each product c. The standard DLH rate d. The standard number of DLHs required to make each product e. The standard cost of each product f....
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This note was uploaded on 02/20/2012 for the course ACCT 226 taught by Professor Smith during the Spring '10 term at South Carolina.

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