Cayahuga Hardwood produces handcrafted jewelry boxes. A standard-sized box requires 8 feet of hardwood in the finished product.
In addition, two board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.Required: Compute the standard direct-material cost of a jewelry box.
1 answer:
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Answer:
The correct solution is "6.09%".
Explanation:
Given:
Nominal rate,
= 6%
or,
= 0.06
As we know,
⇒
By substituting the values, we get
(%)