A manufacturer produces a product known as Symphony X. The company uses a standard costing system and provides you with the following information: Direct materials required to produce one unit of Symphony X: 9.5 KG Standard cost of direct materials: £50 /KG Normal wastage while producing two units of Symphony X: 2.5 KG per Unit Based on the above information, what is the standard direct materials cost per unit of Symphony X? Choose one from the following: A. £475.00 B. £350.00 C. £537.50 D. £575.50
A manufacturer produces a product known as Symphony X. The company uses a standard costing system and provides you with the following information: Direct materials required to produce one unit of Symphony X: 9.5 KG Standard cost of direct materials: £50 /KG Normal wastage while producing two units of Symphony X: 2.5 KG per Unit Based on the above information, what is the standard direct materials cost per unit of Symphony X? Choose one from the following: A. £475.00 B. £350.00 C. £537.50 D. £575.50
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Question
A manufacturer produces a product known as Symphony X. The company uses a
Direct materials required to produce one unit of Symphony X: |
9.5 |
KG |
|
Standard cost of direct materials: |
£50 |
/KG |
|
Normal wastage while producing two units of Symphony X: |
2.5 |
KG per Unit |
|
Based on the above information, what is the standard direct materials cost per unit of Symphony X?
Choose one from the following:
A. |
£475.00 |
|
B. |
£350.00 |
|
C. |
£537.50 |
|
D. |
£575.50 |
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