Question

A company makes concrete statues. Each statue requires 10 pounds of concrete at $2 per pound and 0.2 direct labor hours at $30 per hour. Overhead is assigned at the rate of $80 per labor hour. What is the standard cost to make one unit and the total that would appear on the standard cost card?

Answer 1

the standard cost to make one unit is $42

Step-by-step explanation:

Standard Costing is the Cost established from the firm`s Past experience.

Standard Costing Calculation for Concrete statues

Material

Concrete (10 pounds×$2) $20

Labor

Direct Labor( 0.2 direct labor hours × $30) $6

Overheads

Allocated ($80×0.2 direct labor hours) $16

Total $42