Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products.
Fantastic news! We've Found the answer you've been seeking!
Question:
Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct materials cost standard (per square foot)?
A) $9.25 per square foot
B) $7.85 per square foot
C) $4.25 Per square foot
D) $4.00 per square foot
Related Book For
Taxation for Decision Makers 2019
ISBN: 9781119497288
9th edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
Posted Date: