Answer:
Standard cost per unit is $143.4552
If we round it off to two decimal places, then the cost will be $143.46
Explanation:
The standard cost per unit is the cost that is expected to be incurred on a single product. This cost is made up of direct material, direct labor and overheads that will be incurred to make a product. The allocation of these costs to a product is based on the standard quantity set to be consumed by each unit of the product. Thus standard cost per units is,
Standard cost per unit
Direct Material (2.52 * 6.76) $17.0352
Direct Labor (6.02 * 10) $60.2
Manufacturing Overheads (11 * 6.02) $66.22
Total cost per unit $143.4552
Answer rounded off to two decimal places is $143.46
Answer:
Total standard costs to produce one unit of a product is $143.4552
Explanation:
Given Data:
Direct materials per unit = 2.52 pounds
Cost per pounds = $6.76
Direct labor per unit = 6.02 hours
Cost per hour = $10
Predetermined rate = $11.00
Calculating the standard direct material cost, we have:
Direct material cost = pounds required per unit * cost per pound
= 2.52 *$6.76
= $17.0352
Calculating the standard direct labor cost, we have;
Direct labor cost = hours required per unit* cost per hour
= 6.02 * $10
= $60.2
Calculating the standard manufacturing overhead, we have;
Standard manufacturing overhead = Hours required per unit*
predetermined rate
= 6.02 * $11.00
= $66.22
Calculating total standard cost of one unit, we have;
Standard cost = direct material + direct labor + direct manufacturing
overhead
= $17.0352 + $60.2 + $66.22
= $143.4552
Thus, total standard costs to produce one unit of a product is $143.4552
