Use the Following Information for Questions

question 144

Multiple Choice

Use the following information for questions
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 labor rate per hour is

• A) $ 12.00.
• B) $ 12.30.
• C) $15.60.
• D) $15.90.

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Definitions:

Financial Instruments

Contracts and securities that represent a financial value or obligation, such as stocks, bonds, options, and futures.

Bondholders

Investors who own bonds issued by corporations or governments, entitled to receive interest payments and the principal amount upon maturity.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with possible interest.

Money Market Instruments

Short-term debt securities issued by financial institutions, companies, and governments.