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Gunnie Inc. produces and sells dog food. Each bag contains 20 pounds of dog food. Following...

Question:

Gunnie Inc. produces and sells dog food. Each bag contains 20 pounds of dog food. Following additional information is provided by the company:

Direct materials quantity standard 20 pounds per unit
Direct materials price standard $0.02 per pound
Direct labor time standard 0.1 hour per unit
Direct labor rate standard $11.50 per hour
Variable overhead rate standard $2.50 per machine hour
Fixed overhead rate standard $1.50 per machine hour
Machine hour standard 0.25 hours per unit

Compute the standard unit cost for each bag.

Standard unit cost:

Standard cost is the budgeted cost against which the companies compare their actual performances.

Answer and Explanation:

GUNNIE INCORPORATION STANDARD UNIT COST FOR EACH BAG

...

Particulars

Standard price

Standard usage

Total

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How to Convert Standard Units of Measure

from Praxis Elementary Education - Multiple Subjects (5001): Practice & Study Guide

Chapter 40 / Lesson 2
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