Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is. 3 pounds and. 1 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $.15 per pound, and receiving and handling costs are $.10 per pound. The hourly wage rate is $10.00 per hour, but a raise which will average $.25 will go into effect soon. Payroll taxes are $1.00 per hour, and fringe benefits average $2.00 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is. 2 hours and. 1 hours, respectively. The standard direct materials quantity per unit is a. 2.6 pounds. b. 2.7 pounds. c. 2.9 pounds. d. 3.0 pounds. 4. The standard direct labor hours per unit is

a. 1 hour.

b. 1.1 hours.

c. 1.2 hours.

d. 1.3 hours.

standard direct materials quantity per unit = 3.00 Pounds

so correct option is d. 3.0 pounds

Direct Labor is = 1.3 hours

correct option is d. 1.3 hours.

Explanation:

given data

materials = 2.6 pounds

waste = 0.3 pounds

spoilage = 0.1 pounds

discount = 2 %

Freight costs = $.15 per pound

handling costs = $.10 per pound

wage rate = $10.00 per hour

Payroll taxes = $1.00 per hour

fringe benefits average = $2.00 per hour

Standard production time = 1 hour per unit

to find out

standard direct materials quantity per unit and The standard direct labor hours per unit

solution

standard direct materials quantity per unit = Net Raw Material Required + waste + Spoilage ... 1

standard direct materials quantity per unit = 2.6 + 0.3 + 0.10

standard direct materials quantity per unit = 3.00 Pounds

so correct option is d. 3.0 pounds

and

Direct Labor is = Net Hrs Required + Allowance + Rest

Direct Labor is = 1 + 0.2 + 0.1

Direct Labor is = 1.3 hours

correct option is d. 1.3 hours.