Develop the Standard Costs from the Information Given

question 82

Essay

Develop the standard costs from the information given. Morlee Corporation makes three models of storage sheds. Model JB102 a 10' by 12' model that looks Victorian with windows, shutters and gingerbread along the roof line, is Morlee's most popular model. Direct materials for the JB102 consists of $ 66.00 for 7 sheets of pressed board, $59.00 for 2 x 4's for framing, $22.00 for roofing shingles, and $17.00 for aluminum siding. The nails, glue and other indirect materials for the company total $38,880 per year and are applied based on direct labor hours. The total direct labor hours for Morlee for one year are estimated to be 8,000 per year. Direct labor for each JB 102 is estimated to be 7 hours. The average hourly rate at Morelee is $14.50. Prepare a standard cost card for Model JB102. Units and per unit amount for material can be omitted.

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Definitions:

Obvious

Easily perceived or understood; clear, self-evident, or apparent.

Trade Dress

The visual appearance of a product or its packaging that signifies the source of the product to consumers.

Trademark Protection

Legal measures and rights granted to protect distinctive symbols, names, or logos used by businesses to identify their products or services.

Patent Protection

Legal exclusivity granted to an inventor or assignee for a limited period in exchange for the public disclosure of an invention.