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The Direct Materials standard cost is $13.20
The Direct Labor standard cost is $12.00
The Variable Manufacturing Overhead standard cost is $5.00
The Fixed manufacturing overhead standard cost is $11.80
Standard cost per unit- $ 42.00
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What is Standard Cost ?
A standard cost is described as a predetermined value, an estimated future cost, an expected cost, a budgeted unit value, a forecast cost, or as the "should be" cost. trendy expenses are frequently an critical part of a manufacturer's annual profit plan and operating budgets.
when standard prices are used in a manufacturing setting, a product's standard cost for a future accounting period will consist of the following:
- Direct substances: a standard quantity of every material and a standard cost in keeping with unit of material
- Direct labor: a standard quantity of labor and a standard cost in step with hour of labor production overhead: a price range for the fixed overhead, the standard variable overhead rate, and the usual quantity for applying a set and variable overhead rates
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