Question

Fleck's standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $4 per pound and $14 per hour for direct labor. The standard overhead rate is $16 per direct labor hour.
The total standard cost of Fleck's product is how much?

a. $34
b. $29
c. $45
d. $53

Answer 1

Answer:

d. $53

Explanation:

The computation of the total standard cost is shown below

= Standard rate per pound × number of pounds + standard rate per direct labor hour × number of direct labor hour + standard overhead rate × number of direct labor hour

= $4 per pound × 2 pounds + $14 per direct labor hour × 1.5 labor hour + $16 per direct labor hour × 1.5 labor hour

= $8 + $21 +$24

= $53