Problem

Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires S board...

Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires S board feet of hardwood in the finished product. In addition, 2 board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.

Required: Compute the standard direct-material cost of a jewelry box.

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