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# ACC 560 WEEK 7 HOMEWORK CHAPTER 11 EXERCISES 3, 6, AND 12, PROBLEM 2

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E11-3 Stefani Company has gathered the following information about its product. Direct materials. Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost \$5 per pound, but Stefani always takes the 2% cash discount all of its suppliers offer. Freight costs average \$0.25 per pound. Direct labor. Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.4 hours per unit. The average hourly pay rate of Stefani's employees is \$12. Payroll taxes and fringe benefits are an additional \$3 per hour. Manufacturing overhead. Overhead is applied at a rate of \$7 per direct labor hour.
E11-6 Lewis Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of \$12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of \$12.15 per hour to produce 10,000 units of Product DD.
E11-12 Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is \$850,000 comprised of \$250,000 of variable costs and \$600,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours
P11-2A Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

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