A company makes concrete statues. Each statue requires 10 pounds of concrete at $2 per pound and 0.2 direct labor hours at $30 per hour. Overhead is assigned at the rate of $80 per labor hour. What is the standard cost to make one unit and the total that would appear on the standard cost card?

Question

Business

Saniya

8 September, 09:33

A company makes concrete statues. Each statue requires 10 pounds of concrete at $2 per pound and 0.2 direct labor hours at $30 per hour. Overhead is assigned at the rate of $80 per labor hour. What is the standard cost to make one unit and the total that would appear on the standard cost card?

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Answers (1)

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Wilkinson · Answer 1

the standard cost to make one unit is $42

Explanation:

Standard Costing is the Cost established from the firm's Past experience.

Standard Costing Calculation for Concrete statues

Material

Concrete (10 pounds*$2) $20

Labor

Direct Labor (0.2 direct labor hours * $30) $6

Overheads

Allocated ($80*0.2 direct labor hours) $16

Total $42