Reference no: EM13495404

1. Seneca Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 7 board feet of hardwood in the finished product. In addition, 1.5 board feet of scrap lumber is normally left from the production of one box. Hardwood costs $5.00 per board foot, plus $1.20 in transportation charges per board foot.

Question: Compute the standard direct-material cost of a jewelry box.

2. Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. These following standards have been set by the production-engineering staff and the controller.

Direct labor: Direct material:

Quantity, .25 hour Quantity, 4 kilograms

Rate, $12 per hour Price, $0.60 per kilogram

Actual material purchases amounted to 240,000 kilograms at $0.62 per kilogram. Actual costs incurred in the production of 50,000 units were as follows:

Direct labor: $158,600 for 13,000 hours

Direct material: $130,200 for 210,000 kilograms

Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the standard direct labor rate is $14 per hour, and the standard direct-material price is $0.59 per kilogram.