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Janitor Supply produces an industrial cleaning powder that requires 50 grams of material at $0.40 per gram and 0.15 direct labor hours at $14.00 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?Multiple Choice$22.10.$22.70.$35.00.$4.80.$24.80.

Question

Janitor Supply produces an industrial cleaning powder that requires 50 grams of material at 0.40pergramand0.15directlaborhoursat0.40 per gram and 0.15 direct labor hours at 14.00 per hour. Overhead is applied at the rate of 18perdirectlaborhour.Whatisthetotalstandardcostforoneunitofproductthatwouldappearonastandardcostcard?MultipleChoice18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?Multiple Choice22.10.22.70.22.70.35.00.4.80.4.80.24.80.

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Solution

To calculate the total standard cost for one unit of product, we need to add up the cost of material, labor, and overhead.

  1. Material cost: 50 grams of material at 0.40pergram=500.40 per gram = 50 * 0.40 = $20.00

  2. Labor cost: 0.15 hours at 14.00perhour=0.1514.00 per hour = 0.15 * 14.00 = $2.10

  3. Overhead cost: Overhead is applied at the rate of 18perdirectlaborhour.So,for0.15hours,theoverheadcost=0.1518 per direct labor hour. So, for 0.15 hours, the overhead cost = 0.15 * 18 = $2.70

Adding all these up, the total standard cost for one unit of product = 20.00(material)+20.00 (material) + 2.10 (labor) + 2.70(overhead)=2.70 (overhead) = 24.80

So, the correct answer is $24.80.

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