Compute the total standard cost per book for Publisher's Company using the following information: 1.Direct Materials: 1 ream of paper allowed per output unit manufactured, at $5.00 per ream.2.Direct Mfg.Labour: 0.35 labour-hours of input allowed per output unit finished, at $17.50 standard cost per hour.3.Variable Manufacturing Overhead: assigned on the basis of 0.25 per hour at $25 standard cost per hour per output unit finished.
A)$11.13 per output unit
B)$14.63 per output unit
C)$17.38 per output unit.
D)$47.50 per output unit
E)$48.60 per output unit

Question

Quizplus · Accepted Answer

Direct Materials cost = $5.00 per ream
One ream of paper allowed per output unit manufactured

Direct Manufacturing Labor cost = $17.50 per hour
0.35 labor hours of input allowed per output unit finished

Variable Manufacturing Overhead cost = $25.00 per hour
0.25 overhead hours of input allowed per output unit finished

Total Standard Cost per output unit = Direct Materials + Direct Manufacturing Labor + Variable Manufacturing Overhead

Total Standard Cost per output unit = ($5.00 x 1) + ($17.50 x 0.35) + ($25.00 x 0.25)

Total Standard Cost per output unit = $5.00 + $6.13 + $6.25

Total Standard Cost per output unit = $17.38

Therefore, the total standard cost per output unit is $17.38, so the answer is C.

Compute the Total Standard Cost Per Book for Publisher's Company