Question

Return to Blackboard Is Davis, Managerial Accounting, se Help System Announcements CALCULATOR PRINTER VERSION BACK 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. PureJigs 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 Puzzle Jigs $0.75 to purchase. It takes 25 minutes for a worker to mount the picture, cut the pure, and packit in a box workers are paid $5.50 per hour; fringe benefits amount to an additional 25 percent of wages Pu igsapoles overhead at a rate of $12 per direct labor hour Your answer is correct. Calculate the standard price and quantity for each component of direct materials. (Round answers 2 decimal places Standard Quantity Standard Price Material 17x21 cardboard sheet per sheet Mounting adhesive per ounce Packing box 0x T 70 per box LETTE

Answer 1

Standard Quantity = 25/60 i.e. 0.42 hours

Standard Price = $12 per direct labor hour