Ship Co.produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per hour.Overhead is applied at the rate of $9 per direct labor hour.What is the total standard cost for one unit of product that would appear on a standard cost card?
A)$25.02.
B)$11.52.
C)$2.40.
D)$2.52.
E)$3.42.

Question

Quizplus · Accepted Answer

The total standard cost includes material cost, labor cost, and overhead. Material cost is 1.2 meters * $0.85 = $1.02. Labor cost is 0.1 hours * $15.00 = $1.50. Overhead is 0.1 hours * $9.00 = $0.90. Total cost is $1.02 + $1.50 + $0.90 = $3.42.

Ship CoProduces Storage Crates That Require 1