Question

Larkin Company accumulated the following standard cost data concerning product I-Tal. Direct materials per unit: 2.52 pounds at $6.76 per pound Direct labor per unit: 6.02 hours at $10 per hour Manufacturing overhead: Allocated based on direct labor hours at a predetermined rate of $11.00 per direct labor hour Compute the standard cost of one unit of product I-Tal. (

Answer 1

Answer:

Total standard costs to produce one unit of a product is $143.4552

Explanation:

Given Data:

Direct materials per unit = 2.52 pounds

Cost per pounds = $6.76

Direct labor per unit =  6.02 hours

Cost per hour = $10

Predetermined rate = $11.00

Calculating the standard direct material cost, we have:

Direct material cost = pounds required per unit * cost per pound

                                  = 2.52 *$6.76

                                  = $17.0352

Calculating the standard direct labor cost, we have;

Direct labor cost =  hours required per unit* cost per hour

                             = 6.02 * $10

                            = $60.2

Calculating the standard manufacturing overhead, we have;

Standard manufacturing overhead = Hours required per unit*

                                                              predetermined rate                                  

                                                         = 6.02 * $11.00

                                                        = $66.22

Calculating total standard cost of one unit, we have;

Standard cost = direct material + direct labor + direct manufacturing

                            overhead

                          = $17.0352 +  $60.2 +  $66.22

                          = $143.4552

Thus, total standard costs to produce one unit of a product is $143.4552

Answer 2

Answer:

Standard cost per unit is $143.4552

If we round it off to two decimal places, then the cost will be $143.46

Explanation:

The standard cost per unit is the cost that is expected to be incurred on a single product. This cost is made up of direct material, direct labor and overheads that will be incurred to make a product. The allocation of these costs to a product is based on the standard quantity set to be consumed by each unit of the product. Thus standard cost per units is,

Standard cost per unit

Direct Material   (2.52 * 6.76)                   $17.0352

Direct Labor   (6.02 * 10)                           $60.2

Manufacturing Overheads  (11 * 6.02)     $66.22

Total cost per unit                                     $143.4552

Answer rounded off to two decimal places is $143.46