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Fleming Corporation produces leather purses. The company is setting up a standard cost system and has collected the following data: Leather requirements for one purse 5 strips Allowance for waste 1% of the leather Allowance for rejects .5 % of the leather Purchase price $200 per 100 strips Purchase discount 5% of purchase price Shipping cost $20 per box of 100 strips Receiving and handling cost $10 per box of 100 strips The company always takes advantage of price discounts. Required: 1. Determine the standard price per strip of leather. 2. Determine the standard quantity of leather for one purse. 3. Determine the standard cost of the leather for one purse.
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