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brilliants [131]
3 years ago
5

Janitor Supply produces an industrial cleaning powder that requires 49 grams of material at $0.20 per gram and 0.40 direct labor

hours at $14.00 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?
Business
1 answer:
Dima020 [189]3 years ago
5 0

Answer:

Standard cost = $21.8

Explanation:

The total standard cost of one unit

= Direct material cost + Direct Labour cost + Overhead cost

Direct Material = 49× $0.20 = 9.8

Direct labour cost = 0.40× $14 = 5.6

Overhead cost =  $16× 0.40= 6.4

Standard cost = 9.8 +  5.6 + 6.4  = $21.8

Standard cost = $21.8

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The cab drivers sales are relevant here but the sales assumption was unrealistic (Highly optimistic assumption) so the option C and D are incorrect.

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