Question

Ship Co. produces storage crates that require 34.0 meters of material at $0.20 per meter and 0.30 direct labor hours at $19.00 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

Answer:

Total standard cost = $103.7

Explanation:

Standard cost is the sum of the standard material cost , standard labour cost and standard overhead

Overhead  = OAR × direct labour hour

               = $16 × (0.30×$19.00)= 91.2

Standard cost = (34.0×$0.20) + (0.30×$19.00) +  91.2 = $103.7

Standard cost = $103.7