EA2. Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $17.50. A. What are the standard hours per chest? B. What is the standard cost per chest for labor?

EA2. Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $17.50. A. What are the standard hours per chest? B. What is the standard cost per chest for labor?

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Description: Sample ExerciseopensEA2. Rene is working with the operations manager to determine whatthe standard labor cost is for a spice chest. He has watched the processfrom start to finish and taken detailed notes on what each employeedoes. The first employee

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EA: Rene is working with the operations manager to determine what the standard labor cost is for a spice...

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Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $14.50. A. What are the standard hours per chest? Standard hour per chest fill in the blank 1 hours B. What is the standard cost per chest for labor? Round your answer to two decimal places. Standard cost per chest $fill in the blank 2
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $22.30. A. What are the standard hours per chest? B. What is the standard cost per chest for labor? Round your answer to two decimal places.
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $13.90. A. What are the standard hours per chest? Standard hour per chest hours B. What is the standard cost per chest for labor? Round your answer to two decimal places. Standard cost per chest $
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The fırst employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour(s) for each chest. The next employee takes the wood and cuts it to the proper size. This takes 32 minutes. The next employee assembles and sands the chest. Assembly takes 3 hour(s). The chest then goes to the finishing department. It takes 3 hour(s) to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $18.62. What is the standard cost per chest for labor? Round to the nearest penny, two decimal places.
Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping,final assembly, testing, and shipping. In the stamping operation, a number of individuals are responsible for stampingthe steel outer surface of the appliance. The stamping operation is set up prior to each run. A run of 40 stampings iscompleted after each setup. A setup requires 60 minutes. The parts wait for the setup to be completed before stampingbegins. Each stamping requires 5 minutes of operating time. After each batch is completed, the operator moves thestamped covers to the final assembly area. This move takes 10 minutes to complete.The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. Thebatch of 40 appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In thefinal test, the 40-unit batch is tested one at a time. Each test requires 8 minutes. The completed…
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time has been 140 minutes, consisting of the following steps: Turn off machine and remove fixture from lathe Go to tool room with fixture Record replacement of fixture to tool room Return to lathe Clean lathe Return to tool room Record withdrawal of new fixture from tool room Return to lathe Install new fixture and turn on machine Total setup time 15 minutes b. 15 18 20 20 20 12 15 5 140 minutes a. A company plans to setup a machine to increase the productivity. The average setup time is 140 minutes. Do you think the management needs to minimize the setup time. Identify the reason that supports the answer. a. Yes b. No Reason: a. The setup time is not a concern of the company as it is not related to productivity of the company. b. The setup time should be considered because long setup time leads to increased economic cost of the setup. c. The cost incurred for setup can be ignored as it is related to machinery. d. Long setup cost can be recovered as depreciation. A company plans to…
Lead Time iSounds Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 20 printed circuit boards. Each board requires 5 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 10 minutes to complete. The final assembly for each stereo unit requires 16 minutes and is also done in batches of 20 units. A batch of 20 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 25…
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…