Oxnard Industries Produces a Product That Requires 2

question 214

Multiple Choice

Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds respectively. The purchase price is $2 per pound but a 2% discount is usually taken. Freight costs are $.10 per pound and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit and the allowance for rest periods and setup is .2 hours and .1 hours respectively.
-The standard direct materials price per pound is

• A) $1.96.
• B) $2.00.
• C) $2.13
• D) $2.17

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Definitions:

Self-perception Theory

A psychological theory proposing that individuals infer their own attitudes and emotions by observing their behavior and the context in which it occurs.

Central Proposition

A fundamental principle or idea that is central to and supports a theory, argument, or belief system.

Personalities

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Situation

The set of environmental and contextual factors present at a certain time and location.