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andrew-mc [135]
3 years ago
7

Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fa

bric at $4.00 per yard Standard Labor: 1 hour at $5.75 per hour Factory Overhead: $2.90 per direct labor hour
Business
1 answer:
Paha777 [63]3 years ago
6 0

Answer:

The standard cost for one hat is $ 11.65

Explanation:

The standard cost of a hat is determined after consider all the manufacturing costs components in it. Based on the data available, it is calculated as under:

Standard Material  3/4 yards @ $ 4 per yard                               $ 3.00

Standard Labor      1 hour at $ 5.75 per hour                               $ 5.75

Factory overhead   $ 2.90 per direct labor hour                         <u>$ 2.90</u>

Standard cost for one hat                                                           <u>$ 11.65</u>

The factory overhead has been considered at one hour, which is the direct labor hour in the standard calculation.

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a).

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