Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products
The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $6.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are $20.00 per hour. Payroll costs are $4.00 per hour, and benefits are $5.00 per hour. How much is the direct materials standard cost per square foot?
A) $11.20
B) $10.20
C) $6.20
D) $6.00
C .C) Direct materials cost standard (per square foot) = Cost per square foot + Delivery costs
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The master production schedule (MPS) is the part of the material requirements planning that specifies when components must be ordered or assembled
Indicate whether the statement is true or false
If the ________ is greater than or equal to the ________, the project should be accepted
A) IRR; NPV B) cost of capital; IRR C) IRR; cost of capital D) NPV; IRR E) NPV; discount rate