Modular houses are Homes, Inc.s specialty. The companys best-selling model is a three-bedroom, 1,400-square-foot house with an
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This year, the cost of wood framing materials is expected to increase by 20 percent, and a deluxe front door will cost $496. The cost of the door hardware will increase by 10 percent, and the cost of electrical materials will increase by 20 percent. Exterior siding cost should decrease by $15 per unit. The cost of interior finishing materials is expected to remain the same. The carpenter’s wages will increase by $1 per hour, and the door specialist’s wages should remain the same. The electrician’s wages will increase by $0.50 per hour. Finally, the overhead rate will decrease to 30 percent of total direct materials cost.
Required
1. Compute the total standard cost of direct materials per entrance for last year.
2. Using your answer to requirement 1, compute the total standard unit cost per entrance for last year.
3. Compute the total standard unit cost per entrance for this year. (Round to the nearest dollar.)
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Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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