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The Starbright Corporation has compiled the following data.The company intends to use this information to develop standard costs per unit for its single product:
Direct materials = $50 per ton
Direct labor = $12.75 per hour
Variable manufacturing overhead = $5 per direct labor hour
Fixed manufacturing overhead = $18,700
Expected production = 1,700 units
Each unit of the company's single product requires 2.5 tons of direct materials and 22.5 hours to manufacture.
-What is the standard cost for direct labor per unit for Starbright's single product? (Round your answer to the nearest dollar. )
A)$100 per unit
B)$287 per unit
C)$180 per unit
D)$285 per unit

Question

Quizplus · Accepted Answer

The standard cost for direct labor per unit is calculated by multiplying the direct labor cost per hour by the number of hours required to manufacture one unit. Thus, $12.75 per hour * 22.5 hours = $287.25, which rounds to $287 per unit.

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