Bonita Industries produces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.5 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.

The standard direct materials quantity per unit is

Question

Mathematics

Beckham Mccann

22 December, 20:29

Bonita Industries produces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.5 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.

The standard direct materials quantity per unit is

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Micah · Answer 1

3.1 pounds

Step-by-step explanation:

Data provided for calculating the direct materials quantity per unit is here below:-

Quantity required per unit = 2.5 pounds

Allowance for waste = 0.5 pounds

Allowance for spoilage = 0.1 pounds

The calculation of standard direct materials quantity per unit is is shown below:-

Standard materials quantity per unit = Quantity required per unit + Allowance for waste + Allowance for spoilage

= 2.5 pounds + 0.5 pounds + 0.1 pounds

= 3.1 pounds

Therefore for calculating the standard direct materials quantity per unit we simply added the quantity required per unit, allowance for waste and allowance for spoilage.