Question

It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements. What is the standard cost of a single backpack?

a. $10.00
b. $12.00
c. $14.00
d. $16.00

Answer 1

The standard cost of a single backpack is $10.00.

Step-by-step explanation:

The standard cost of a single backpack can be determined by considering the direct materials, direct labor, and variable manufacturing overhead involved in the production process. The standard cost includes the cost of materials, the wages for labor, and the variable overhead expenses. By calculating these costs and summing them up, we can determine the standard cost of a single backpack. For example, if the direct materials cost $5, direct labor cost $3, and variable manufacturing overhead cost $2 for each backpack, then the standard cost would be $10 ($5 + $3 + $2 = $10). Therefore, the correct answer is $10.00 (a).