Business, 12.03.2020 17:09 stankyweezle

XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800 units, respectively. XYZ Company currently pays a standard rate of $3 per foot for raw material A and $5 per sheet for raw material B. Each unit produced requires 4 feet of raw material A and 2 sheets of raw material B. Each unit produced also requires 30 minutes of cutting direct labor time at a standard rate of $16 per hour and 2 hours of assembly direct labor time at a standard rate of $20 per hour. Manufacturing overhead is applied at the standard rate of $10 per direct labor hour.

The standard cost per unit of Item #123 is:

Multiple Choice

A. $62.
B. $82.
C. $87.
D. $95.

Answers: 2

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XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800...

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