Carteret Inc. manufactures hammocks under various brand names. The company sells most of its hammocks in...

 

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Carteret Inc. manufactures hammocks under various brand names. The company sells most of its hammocks in the second quarter of each year. Their production budget for the second quarter shows the following number of hammocks needs to be produced: April May June 6,000 units 10,000 units 15,000 units Each unit requires 30 feet of cotton rope cord which costs $.50 per foot. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. In addition, each hammock requires 45 minutes of direct labor for assembly and inspection at a cost of $.25 per minute. The company currently applies manufacturing overhead to production at the rate of $8 per direct labor hour. Refer to the Carteret Inc. information above. The cost of the rope cord that should be purchased in May is: Carteret Inc. manufactures hammocks under various brand names. The company sells most of its hammocks in the second quarter of each year. Their production budget for the second quarter shows the following number of hammocks needs to be produced: April May June 6,000 units 10,000 units 15,000 units Each unit requires 30 feet of cotton rope cord which costs $.50 per foot. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. In addition, each hammock requires 45 minutes of direct labor for assembly and inspection at a cost of $.25 per minute. The company currently applies manufacturing overhead to production at the rate of $8 per direct labor hour. Refer to the Carteret Inc. information above. The cost of the rope cord that should be purchased in May is:

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According to the production budget 10000 units of hammocks need to be produced in May Each unit requ... View the full answer