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San Diego State University Operations And Supply Chain Management Assignment Help - Current


Question - Tuna Company set the following standard unit costs for its single product.
Direct materials (28 Ibs. @ $5 per Ib.) $ 140.00
Direct labor (10 hrs. @ $10 per hr.) 100.00
Factory overhead"variable (10 hrs. @ $6 per hr.) 60.00
Factory overhead"fixed (10 hrs. @ $9 per hr.) 90.00

Total standard cost $ 390.00







The predetermined overhead rate is based on a planned operating volume of 70% of the productive
capacity of 60,000 units per quarter. The following flexible budget information is available.

Operating Levels

60% 70% 80%
Production in units 36,000 42,000 48,000
Standard direct labor hours 360,000 420,000 480,000
Budgeted overhead
Fixed factory overhead $ 3,780,000 $ 3,780,000 $ 3,780,000
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