Question

Janitor Supply produces an industrial cleaning powder that requires 48 grams of material at $0.10 per gram and 0.15 direct labor hours at $11.00 per hour. Overhead is applied at the rate of $10 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card

Answer 1

Unitary cost= $7.95

Step-by-step explanation:

Giving the following information:

48 grams of material at $0.10 per gram

0.15 direct labor hours at $11.00 per hour

Overhead is applied at the rate of $10 per direct labor hour.

We need to calculate the unitary production cost:

Unitary cost= 48*0.1 + 0.15*11 + 0.15*10

Unitary cost= $7.95