Business, 22.04.2020 00:32 gototiger

Orange Corporation is developing standards for its products. Product A requires a material that is purchased for $80.00 per pound from the supplier. By paying cash, the company gets a discount of 3% off this purchase price. Shipping costs from the supplier's warehouse amount to $6.66 per pound. Receiving costs are $0.45 per pound. Each unit of product A requires 0.96 pound of this material. The allowance for waste and spoilage is 0.05 pound and the allowance for rejects is 0.09 pound of this material for each unit of product A.

Required:

(A) Determine the standard price per pound of this material.
(B) Determine the standard pounds of this material per unit of product A.

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Orange Corporation is developing standards for its products. Product A requires a material that is p...

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