Question

Janitor supply produces an industrial cleaning powder that requires 27 grams of material at $0.20 per gram and 0.35 direct labor hours at $15.00 per hour. overhead is applied at the rate of $14 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

Answer:

The answer is "$15.55".

Explanation:

material = 27 grams

per gram rate = $0.20

direct labor hours = 0.35

direct labor rate = $15.00 per hour

overhead labor cost = $14 per hour

So, we are going to find the standard cost, first we calculate the cost of direct materials, direct labor, and overhead per unit.

After finding these, we have to add up these amounts to find the standard cost.

Now, first we calculate cost of direct materials;

= material x per gram rate

= 27 X $0.20

= $5.4

Direct labor cost;

= direct labor rate x direct labor hours

= $15.00 x 0.35

= $5.25

Overhead per unit cost;

= overhead labor cost x labor hours

= $14 x 0.35

= $4.9

Now add all these amount;

Total standard cost for one unit = $5.4 + $5.25 + $4.9

= $15.55