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7 April, 02:42

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?

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  1. 7 April, 02:48
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    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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