Question

Ship Co. produces storage crates that require 37.0 meters of material at $0.50 per meter and 0.10 direct labor hours at $12.00 per hour. Overhead is applied at the rate of $18 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

Standard cost per unit= $21.5

Step-by-step explanation:

Giving the following information:

Ship Co. produces storage crates that require 37.0 meters of material at $0.50 per meter

0.10 direct labor hours at $12.00 per hour.

Overhead is applied at the rate of $18 per direct labor hour.

We need to determine the standard cost per unit:

Direct material= 37*0.5= 18.5

Direct labor= 0.1*12= 1.2

Manufacturing overhead= 0.1*18= 1.8

Standard cost per unit= $21.5