Answered: Sticky Manufacturing produces a variety…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

Sticky Manufacturing produces a variety of adhesive products. On one production line,
the company fills one-quart containers with its Skin-Free™ adhesive, a glue that bonds wood
and other substances together but does not adhere to human skin in any way.
The process yield on the Skin-Free™ line is 92%. One-half pound of Chemical SKF is added
at the beginning of the process for every quart of Skin-Free™ started. The standard price for
Chemical SKF is $15.00 per pound.
Calculate the standard quantity of Chemical SKF consumed for every good unit of output of
Skin-Free™. Then, calculate the standard cost of Chemical SKF in one good quart of Skin-
Free™.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution