ns, Inc Industrial Solutions, Inc., sells a wide range of drums, bins, boxes, and other...
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ns, Inc Industrial Solutions, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company's products is a heavy-duty corrosion- resistant metal drum, called the WVD drum, used to store toxic wastes. The company uses a just-in- time production system for these drums. As a result, it holds no WVD drum inventory. It currently produces and sells 5,000 WVD drums annually Industrial Solutions, Inc's accountants have provided detailed cost information for the WVD drums (in the accompanying spreadsheet). According to this report, the total cost of producing and selling a drum is $109.80 WVD Drums Drums produaced and sold annually Selling price per drum per drum: Direct materials Direct labor ($18 per hour) 51.10 25.30 29.80 Selling and administrative expense Total cost per drum drum Allocation basis for FMOH Primarily fixed, but some variable Variable MOH per WWD dnum 51 Allocation basis for fixed selling and administrative expense
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