Easy Multiple Choice, Please answer all for good rating, thank you! A: Coronado

Question

Easy Multiple Choice, Please answer all for good rating, thank you!

A: Coronado Industries expects direct materials cost of $7 per unit for 50000 units (a total of $350000 of direct materials costs). Coronado’s standard direct materials cost and budgeted direct materials cost is

B: Sunland Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $0.2 per pound, and receiving and handling costs are $0.05 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.3 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 price per pound is

$3.00.

C: Vaughn Manufacturing produces a product that requires 2.7 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.4 pounds and 0.2 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 $0.1 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

d: Oriole Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 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 $18 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 labor rate per hour after the raise is going to be

e: Oriole Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00 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 1.5 hour per unit, and the allowance for rest periods and setup is 0.4 hours and 0.3 hours, respectively.

The standard direct labor hours per unit is

1.5 hour.

f: Oriole’s standard quantities for 1 unit of product include 3 pounds of materials and 1.5 labor hours. The standard rates are $5 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Oriole’s product is

Explanation / Answer

A: Answer is the Second option : $7 per unit and $350000 per year

Explanaions: standard always means cost per unit and budgeted means total cost for a given level of output.

B: Answer is the Third option : $2.94

Explanation: Standard Materials price = normal price per unit - discount

C: Answer is the Second option : 3.3 Pounds

Explanations: Stanadard Materials = materials required per unit + Westage + Spoilage

D: Answer is the Third option : $18.30 per hour

Explanations: Standard rate per hour = Existing rate per hour + Increase in rate per hour.

E: Answerr is the Third option : 2.2 hours.

Explanations: Standard Hours = hours required per unit + Rest time + Setup time

Thank You... Please let me know if you have any doubt at any point of the soluton.

F: Answer is the Fourth option : $37.50

Explanations: (3X5)+(1.5X7)+(1.5X8) = $37.5

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