Compute the total standard cost per book for Publisher's Company using the following information: Direct Materials: 1 ream of paper allowed per output unit manufactured, at $5.00 per ream.
Direct Mfg. Labour: 0.35 labour-hours of input allowed per output unit finished, at $17.50 standard cost per hour.
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 per unit = $5.00 per ream ÷ 500 pages per ream = $0.01 per page × 500 pages per output unit = $5.00 per output unit

Direct manufacturing labor cost per unit = 0.35 hours per output unit × $17.50 per hour = $6.13 per output unit

Variable manufacturing overhead cost per unit = $25 standard rate per hour × 0.25 hours per output unit = $6.25 per output unit

Total standard cost per unit = direct materials cost per unit + direct manufacturing labor cost per unit + variable manufacturing overhead cost per unit 
= $5.00 + $6.13 + $6.25 
= $17.38 per output unit

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