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.

Question

Quizplus · Accepted Answer

Direct materials cost per output unit = 1 ream of paper x $5.00 per ream = $5.00
Direct manufacturing labor cost per output unit = 0.35 labor-hours x $17.50 per labor-hour = $6.13
Variable manufacturing overhead per output unit = 0.25 labor-hours x $25 per labor-hour = $6.25

Total standard cost per output unit = $5.00 + $6.13 + $6.25 = $17.38 per output unit.

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