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7 November, 14:54

Janitor Supply produces an industrial cleaning powder that requires 38 grams of material at $0.50 per gram and 0.25 direct labor hours at $16.00 per hour. Overhead is applied at the rate of $18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

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  1. 7 November, 16:30
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    Total standard cost = $ 27.50 per unit

    Explanation:

    Given:

    38 grams of material

    $0.50 per gram

    0.25 direct labor hours at $16.00 per hour

    Overhead is at rate of $18 per direct labor hour

    Direct material per unit = 38 * 0.50/g

    = $19

    Direct labor per unit = 0.25 hours * $ 16/hr

    = $4

    Overhead per unit =.25 hours * $18/hr

    = $4.50

    Total standard cost = $19+$4+$4.50

    = $ 27.50

    Total standard cost = $ 27.50 per unit
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