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Muhsin Company has gathered the information shown on the next page about its product. Direct materials: Each unit of product

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Muhsin Company has gathered the information shown on the next page about its product.
Direct materials: Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost $4 per pound, but Muhsin always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.
Direct labor: Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Muhsin’s employees is $12. Payroll taxes and fringe benfits are an additional $3 per hour.
Manufacturing overhead: Overhead is applied at a rate of $6 per direct labor hour.

Instructions
Compute Muhsin’s total standard cost per unit.

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Direct materials Cost per pound 4 2 X 4 0 25 …View the full answer


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I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
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Related Book For  answer-question
Accounting Principles

Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Details
Chapter # 25- Standard Costs and Balanced Scorecard
Section: Exercises
Problem: 3
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Question Posted: October 21, 2011 05:20:43
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