are so expensive and so unique, we will deploy a Job Costing system. Journalize the following transactions or make the necessary calculations: Calculation. Building a bicycle is labor intensive. And as such, we think the best way

are so expensive and so unique, we will deploy a Job Costing system. Journalize the following transactions or make the necessary calculations: Calculation. Building a bicycle is labor intensive. And as such, we think the best way

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at peak efficiency, a skilled worker will take 21 hours to produce assemble one massage chair and 20 minutes to package one massage chair. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 2.0 hr to adjust the tools, re-oil relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $40 per hour which excludes on-costs of 20 per cent. Question 1 If the company adopts perfection standards, what is the standard labour cost for one massage chair? Round to 2 dec places if required. Question 2 Assume that for every 100 massage chairs assembled, 25 massage chairs will be defective and will have to discarded. If the company adopts perfection standards, recalculate the standard labour cost for…