Reference no: EM131922094

Question - PuzzIeJigs manufactures custom jigsaw puzzles by turning a customer's 12 x 16 photograph into a 340-piece puzzle. The following information has been provided by various units within the company. Each photograph is mounted onto a 18 x 18 piece of cardboard using 3 ounce of adhesive. The company buys the cardboard in bundles of 520 pieces for $100. PuzzleJigs pays shipping costs of $17 per bundle on the cardboard. The mounting adhesive costs $0.27 per ounce. Each finished puzzle is packaged in a box that costs PuzzIeJigs $0.51 to purchase. It takes 25 minutes for a worker to mount the picture, cut the puzzle, and pack it in a box. Workers are paid $6.80 per hour; fringe benefits amount to an additional 26 percent of wages. PuzzleJigs applies overhead at a rate of $12 per direct labor hour.

Calculate the standard price and quantity for direct labor.