Janitor Supply produces an industrial cleaning powder that requires 40 grams of material at $0.10 per gram and .25 direct labor hours at $12.00 per hour. Overhead is applied at the rate of $18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

Question

Quizplus · Accepted Answer

The total standard cost includes material cost, labor cost, and overhead. Material cost is 40 grams * $0.10 = $4.00. Labor cost is 0.25 hours * $12.00 = $3.00. Overhead is 0.25 hours * $18 = $4.50. Total cost = $4.00 + $3.00 + $4.50 = $11.50.

Janitor Supply Produces an Industrial Cleaning Powder That Requires 40