Question

Products is a manufacturer of large flower pots for urban settings. The company has these​ standards:

Direct materials (resin) 9.6 pounds per pot at a cost of $4.55 per pound
Direct labor 1 .0 hour at a cost of $15.80 per hour
Standard variable manufacturing overhead rate $3.40 per direct labor hour
Predetermined fixed manufacturing overhead rate $6.00 per direct labor hour

Required:
a. Compute the standard cost of each of the following inputs per​ pot: direct​ materials, direct​ labor, variable manufacturing​ overhead, and fixed manufacturing overhead.
b. Determine the standard cost of one flower pot.

Answer 1

Results are below.

Step-by-step explanation:

First, we need to determine the standard production costs:

Direct materials= 9.6*4.55= $43.68

Direct labor= 1*15.80= $15.8

Variable manufacturing overhead rate= 3.40*1= $3.4

Predetermined fixed manufacturing overhead rate= 6*1= $6

Finally, the standard cost per unit:

Total unitary cost= 43.68 + 15.8 + 3.4 + 6= $68.88