The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate

Question

Quizplus · Accepted Answer

Direct materials standards and direct labour standards are typically set by analyzing historical data and considering factors such as vendor pricing, production efficiency, and skill levels required for a particular task. The goal is to establish a reasonable and achievable standard that reflects the most efficient and cost-effective way of producing a product.

The Standard Cost Per Unit Is Computed by Multiplying the Standard