Question

Given the data excerpts from Vitex, Incorporated's standard cost system, where direct materials have a standard quantity of 2.20 pounds, a standard price of $16.90 per pound, and a standard cost of $37.18; direct labor has a standard time of 1.00 hours, a standard rate of $15.20 per hour, and a standard cost of $15.20; and variable manufacturing overhead has a standard time of 1.00 hours, a standard rate of $9.50 per hour, and a standard cost of $9.50, what is the total standard cost per unit for the product?

Answer 1

The total standard cost per unit for the product is $61.88.

Step-by-step explanation:

The total standard cost per unit for the product can be calculated by adding the standard cost of direct materials, direct labor, and variable manufacturing overhead per unit.

For direct materials:

Standard quantity = 2.20 pounds
Standard price = $16.90 per pound
Standard cost = $37.18

So, the standard cost of direct materials per unit is 2.20 pounds * $16.90 per pound = $37.18.

For direct labor:

Standard time = 1.00 hour
Standard rate = $15.20 per hour
Standard cost = $15.20

So, the standard cost of direct labor per unit is 1.00 hour * $15.20 per hour = $15.20.

For variable manufacturing overhead:

Standard time = 1.00 hour
Standard rate = $9.50 per hour
Standard cost = $9.50

So, the standard cost of variable manufacturing overhead per unit is 1.00 hour * $9.50 per hour = $9.50.

The total standard cost per unit for the product is the sum of the standard costs of direct materials, direct labor, and variable manufacturing overhead per unit:

Total standard cost per unit = $37.18 + $15.20 + $9.50 = $61.88