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Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hr. $15.00
Standard labor time per faucet 40 min.
Standard number of lb. of brass 3 lb.
Standard price per lb. of brass $2.40
Actual price per lb. of brass $2.50
Actual lb. of brass used during the week 14,350 lb.
Number of faucets produced during the week 4,800
Actual wage per hr. $14.40
Actual hrs. for the week 3,240 hrs

Determine the A detailed estimate of what a product should cost.standard cost per unit for direct materials and direct labor.

User Sharrod
by
7.3k points

1 Answer

4 votes

Answer:

$7.2 and $10

Step-by-step explanation:

The computation of the standard cost per unit for direct material and for direct labor is shown below:

Direct materials standard cost per unit is

= 3 lbs × 2.4

= $7.2

And, Direct labor standard cost per unit is

= $15 × 40 ÷ 60

= $10

All the other information which is mentioned in the question is not relevant. Hence ignored it

User Bharanitharan
by
7.8k points
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