Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. Create a standard cost card for a standard bike helmet for Aurora Sports Company to compute the standard cost for one unit of product.

Question

Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different 
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. Create a standard cost card for a standard bike helmet for Aurora Sports Company to compute the standard cost for one unit of product.

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The Answer of Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different 
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. Create a standard cost card for a standard bike helmet for Aurora Sports Company to compute the standard cost for one unit of product.

Aurora Sports Company Is a Leading Helmet Manufacturer