Spears Manufacturing Company
Spears Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.Spears has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.Spears produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory.
Refer to Spears Manufacturing Company.Spears could set a standard cost for which of the following?
Frame Predetermined. Labor
A) yes yes yes
B) no no no
C) yes no no
D) no yes yes
Correct Answer:
Verified
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