Final answer:
The standard direct labor rate per hour for Sheridan Company is $11.50, the standard direct labor hours per unit is 1.20 hours, and the standard labor cost per unit is $13.80.
Step-by-step explanation:
To calculate the standard labor cost per unit for Sheridan Company, we'll need to consider the provided labor data. We have to determine (a) the standard direct labor rate per hour, (b) the standard direct labor hours per unit, and (c) the standard labor cost per unit.
Standard Direct Labor Rate Per Hour
The standard direct labor rate is the sum of the hourly wage rate, payroll taxes, and fringe benefits. So:
Standard Direct Labor Rate Per Hour = Hourly Wage Rate + Payroll Taxes + Fringe Benefits
Standard Direct Labor Rate Per Hour = $10.00 + $0.50 + $1.00
Standard Direct Labor Rate Per Hour = $11.50
Standard Direct Labor Hours Per Unit
The standard direct labor hours per unit include actual production time, rest periods and cleanup, as well as setup and downtime. Therefore:
Standard Direct Labor Hours Per Unit = Actual Production Time + Rest Periods and Cleanup + Set Up and Downtime
Standard Direct Labor Hours Per Unit = 1.00 hours + 0.10 hours + 0.10 hours
Standard Direct Labor Hours Per Unit = 1.20 hours
Standard Labor Cost Per Unit
To find the standard labor cost per unit, we need to multiply the standard direct labor rate per hour by the standard direct labor hours per unit:
Standard Labor Cost Per Unit = Standard Direct Labor Rate Per Hour × Standard Direct Labor Hours Per Unit
Standard Labor Cost Per Unit = $11.50 × 1.20 hours
Standard Labor Cost Per Unit = $13.80