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The University Of Texas At Austin Operations And Supply Chain Management Assignment Help - Bonita Labs

Question - Bonita Labs performs steroid testing services to high schools, colleges, and universities. Because the company deals solely with educational institutions, the price of each test is strictly regulated. Therefore, the costs incurred must be carefully monitored and controlled. Shown below are the standard costs for a typical test. Direct materials (1 petri dish @ $1.80 per dish) ………….$ 1.80 Direct labor (0.5 hours @ $20.50 per hour) ……………….10.25 Variable overhead (0.5 hours @ $8 per hour) ………………4.00 Fixed overhead (0.5 hours @ $5 per hour) …………………2.50 Total standard cost per test ………………………………$18.55 The lab does not maintain an inventory of petri dishes. Therefore, t ...Read More

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