Question

Ship Co. produces storage crates that require 29.0 meters of material at $0.50 per meter and 0.35 direct labor hours at $13.00 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:

Total standard cost per unit= $23.95

Explanation:

First, we need to allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*0.35= $4.9

Now, the total direct material and total direct labor:

Direct material= 29*0.5= $14.5

Direct labor= 0.35*13= $4.55

Finally, the total cost per unit:

Total standard cost per unit= 4.9 + 14.5 + 4.55

Total standard cost per unit= $23.95