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nata0808 [166]
3 years ago
13

Abba, Inc. has developed the following standards for one of its products: Direct materials - 1/2 pound at $6.00 per pound Direct

labor - 1/4 hour at $20.00 per hour Variable overhead - 20% of direct labor cost Total fixed overhead is expected to be $15,000 and the company expects to produce 7,500 units. The standard cost card for this product would show a cost per unit of ______. $11.00 $8.00 $13.00 $9.00

Business
1 answer:
Sergeu [11.5K]3 years ago
6 0

Answer:

The answer is $11 per unit.

The standard cost card for this product would show a cost per unit of $11.

Explanation:

The workings are attached.

The formula used is as follows:

<u>Standard cost per unit of a product = direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit.</u>

<u></u>

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