Question

Janitor Supply produces an industrial cleaning powder that requires 31 grams of material at $0.30 per gram and 0.40 direct labor hours at $10.00 per hour. Overhead is applied at the rate of $16 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

Total standard cost per unit will be $19.7

Step-by-step explanation:

The standard cost card of the product will be,

$

Material (0.3 * 31) 9.3

Direct Labor (0.4 * 10) 4

Overheads (0.4 * 16) 6.4

Total cost per unit 19.7

Thus, the standard cost per unit will be $19.7