Final answer:
The total standard cost per unit is calculated by adding the product of standard raw material usage and price, standard labor hours and rate, standard variable overhead rate multiplied by standard hours, and the quotient of budgeted fixed overhead and units produced.
Step-by-step explanation:
Calculating Standard and Actual Costs Per Unit
To find the total standard cost per unit, we start by calculating the cost components according to standard costs and then sum them up. The formula for each component is as follows:
- Raw Materials = Standard usage × Standard price per unit
- Direct Labor = Standard hours × Standard rate per hour
- Variable Overhead = Standard application rate × Standard hours
- Fixed Overhead = Budgeted total fixed overhead ÷ Number of units expected to be produced (given by the standard hours × number of units)
The total standard cost per unit is the sum of these components:
Total Standard Cost Per Unit = (2 feet × $8.45/foot) + (1.4 hours × $16.00/hour) + ($2.50 × 1.4 hours) + ($210,000 ÷ (1.4 hours × 30,000 units))
To find the total actual cost per unit, we sum up all the actual costs and divide by the actual number of units produced:
Total Actual Cost = Total actual raw material cost + Total actual labor cost + Actual variable overhead + Actual fixed overhead
Then, Total Actual Cost Per Unit = Total Actual Cost ÷ Actual number of units produced
In this case:
Total Actual Cost = (64,000 feet × $8.55/foot) + $687,300 + $108,000 + $211,800
Total Actual Cost Per Unit = Total Actual Cost ÷ 30,000 units