Stamper manufacturing cos management is considering a

Reference no: EM13582296

A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad:

The piece of sheet metal from which five pad cases can be made costs $0.24.

This amount is based on the number of sheets in a 4,200-pound bundle of sheet metal, which is the usual purchase quantity.

The foam pad that is put in the case costs $0.06, based on the number of pads that can be cut from a large roll of foam.

Production standards, based on engineering analysis recognizing attainable performance, provide for the manufacture of 1,000 pads by two workers in an eight-hour shift. The standard direct labor pay rate is $15 per hour.

Manufacturing overhead is applied to units produced using a predetermined overhead application rate of $16 per direct labor hour, of which $6 per hour is fixed manufacturing overhead.

Required:

(a)	Calculate the standard absorption cost of a package of 10 stamp pads. (Do not round your intermediate calculations. Round final answer to 2 decimal places. Omit the "$" sign in your response.)

Standard absorption cost per package

(b)

Stamper Manufacturing Co.'s management is considering a special promotion that would result in increased sales of 500 packages of 10 pads per package. Calculate the cost per package that is relevant for this analysis. (Do not round your intermediate calculations. Round final answer to 2 decimal places. Omit the "$" sign in your response.)

Relevant cost per package

Reference no: EM13582296

Questions Cloud

On december 31 2011 hurston inc borrowed 3000000 at 12 : on december 31 2011 hurston inc. borrowed 3000000 at 12 payable annually to finance the construction of a new building.

Consider an irreversible adiabatic expansion of an ideal : consider an irreversible adiabatic expansion of an ideal gas against a constant external pressure. derive a formula

Sales and production budgets 8-12 the marketing department : complete the following three exercises and submit to your instructor. be sure to show your work for calculations to

Identify several of the variable mixed and fixed costs that : polaris offers extended service contracts that provide repair and maintenance coverage over its products. as you

Stamper manufacturing cos management is considering a : a cost analyst for stamper manufacturing co. has assembled the following data about the model 24 stamp padthe piece of

Please explain what makes a solution obey beer-lambert law : please explain what makes a solution obey beer-lambert law. thank

In the bell curve richard herrnstein and charles murray : complete a two paragraph reply to the following statementsin the bell curve richard herrnstein and charles murray

The most important methodological problems in the : 1. asbestos exposure has been associated witha.pesticides from the organochloride family b.asbestosis malignant

Haver company currently produces component rx5 for its sole : haver company currently produces component rx5 for its sole product. the current cost per unit to manufacture the

User Account

All Pages