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Question - Home Decorations makes hand-made wreaths. Each wreath requires 1.75 yards of greenery priced at $3.82 per yard and ribbon costing $1.22 per wreath. Home Decorations also allows 0.05 yards of greenery for waste. Direct labor for each wreath requires 1 hour of cutting and 2 hours of weaving. Cutters' direct labor rate is $8.25 and weavers' is $8.35. Rest periods of 0.08 hours per hour are allowed for both sewers and cutters, with an additional 0.05 hour per wreath allowed for machine downtime. What is the standard cost of direct materials for a wreath?
Financial Statement Analysis and Preparation
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