Question

A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $9 per lb.) 41,400 lbs. @ $9.10 per lb. Direct labor (3 hrs. @ $16 per hr.) 24,400 hrs. @ $16.50 per hr. Overhead (3 hrs. @ $12 per hr.) $ 301,400 Units manufactured 8,200 (1) Compute the standard cost per unit.

Answer 1

$129

Step-by-step explanation:

Given that,

Direct materials (5 lbs. @ $9 per lb.)

Direct labor (3 hrs. @ $16 per hr.)

Overhead (3 hrs. @ $12 per hr.)

Standard cost per unit:

= Direct Material + Direct Labor + Overhead

= (Input per unit × Rate per unit) + (Input per unit × Rate per unit) + (Input per unit × Rate per unit)

= (5 × $9) + (3 × $16) + (3 × $12)

= $45 + $48 + $36

= $129 per unit

Therefore, the standard cost per unit is $129.