1. Fruit Tea's data show the following information: Estimated sales (units) Sales price per unit Direct labor per unit Labor rate per hour Aug. Nov. Dec. 25,000 27,500 28,000 $ 31 $ 31 $ 31 $ 31 $ 31 $ 1.75 $ 1.75 $ 1.50 $ 1.50 $ 1.50 $ 21 $ 21 $ 24 $ 24 $ 24 Sept. 25,000 Oct. 27,000 New machinery will be added in October. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 pounds per unit at a cost of $5 |
1. Fruit Tea's data show the following information: Estimated sales (units) Sales price per unit Direct labor per unit Labor rate per hour Aug. Nov. Dec. 25,000 27,500 28,000 $ 31 $ 31 $ 31 $ 31 $ 31 $ 1.75 $ 1.75 $ 1.50 $ 1.50 $ 1.50 $ 21 $ 21 $ 24 $ 24 $ 24 Sept. 25,000 Oct. 27,000 New machinery will be added in October. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 pounds per unit at a cost of $5 |
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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