Home / Questions / Marigold Corp.produces a product that requires 2.6 pounds of materials per unit. The allowance for w
Marigold Corp.produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $1 per pound, but a 2% discount is usually taken. Freight costs are $0.4 per pound, and receiving and handling costs are $0.08 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.3 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 price per pound is $1.00 $1.46 $0.98 $1.48
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