Question

Return to Blackboard - Davis, Managerial Accounting, 3e Help System Announcements 4 BACK NEXT Practice Exercise 02 (Part Level Submission) Puzzle Jigs manufactures custom jigsaw puzzles by turning a customer's 12 x 15 photograph into a 310-piece puzzle. The following information has been provided by various units within the company. Each photograph is mounted onto a 17 x 21 piece of cardboard using 2 ounce of adhesive. The company buys the cardboard in bundles of 510 pieces for $140. Puzzleligs pays shipping costs of $16 per bundle on the cardboard. The mounting adhesive costs $0.26 per Ounce. Each finished puzzle is packaged in a box that costs Puzzleligs $0.76 to purchase. It takes 25 minutes for a worker to mount the picture, cut the puzzle, and pack it in a box. Workers are paid $6.60 per hour, fringe benefits amount to an additional 25 percent of wages. Puzzleligs applies Overhead at a rate of $12 per direct labor hour (a) Your answer is correct. Calculate the standard price and quantity for each component of direct materials. (Round decimal places, e.g. 15.20.) Material Standard Quantity Standard Price 17x 21 cardboard sheet per sheet Mounting adhesive ounce per ounce Packing box box UNK TO TECT

Answer 1

Answer is given below

a) Standard price and Quantity Material Standard quantity UOM Standard price UOM 17X 21 cardboard Mounting adhesive Packing box sheet ounce $0.31 $0.26 $0.76 per sheet per ounce per box Total Standard Cost $0.31 $0.52 $0.76 $1.59 box b) Standard price and quantity for direct labor Total Standard Quantity 0.42 Standard Price Standard Cost $3.44 Direct Labor hour $8.25 c) Standard price and quantity for manufacturing overhead Standard Quantity 0.42 Standard Price Total Standard Cost $5.00 Manufacturing Overhead hour $12.00 d) Standard cost of producing one puzzle Direct Material Direct labor Manufacturing Overhead Total Standard cost Total Standard Cost $1.59 $3.44 $5.00 $10.02