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James at the Mill Barn Woods Produces Handcrafted Frames

Question 67

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James at the Mill Barn Woods produces handcrafted frames.A standard-size 11 × 14 inch frame requires 6 board feet of rustic barn wood in the finished product.In addition, 1 board foot of scrap lumber is normally left from the production of one frame.James pays a demolition company $1.50 per board foot, plus $1.00 in transportation charges per board foot. Required: Compute the standard direct-material cost of a frame.

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