Vaughn Company produces a variety of wool rugs. Its most popular item is a small oval rug, suitable for…

Vaughn Company produces a variety of wool rugs. Its most popular item is a small oval rug, suitable for…

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Vaughn Company produces a variety of wool rugs. Its most popular item is a small oval rug, suitable for placing in front of a door. After
trying many different designs and processes, it landed on one style that requires 22 yards of wool, Employees spend 15 minutes
working on each rug, while each rug requires 30 minutes of machine processing time. Vaughn allocates MOH based on machine hours,
with variable-MOH estimated at $3.00 per machine hour and fixed-MOH estimated at $5.00 per machine hour. If wool is expected to
cost $1.00 per yard and labor time is expected to be $17.00 per hour, what is the standard cost of producing one oval rug? (Round
answer to 2 decimal places, e.g. 15.25.)
Standard cost per unit

Expert Answer:

Answer rating: 100% (QA)

To calculate the standard cost per unit of producing one oval rug we need to consider the costs of w
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