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 14.00 per hour. Overhead is applied at the rate of 22.10.35.00.24.80.
Solution
To calculate the total standard cost for one unit of product, we need to add up the cost of material, labor, and overhead.
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Material cost: 50 grams of material at 0.40 = $20.00
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Labor cost: 0.15 hours at 14.00 = $2.10
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Overhead cost: Overhead is applied at the rate of 18 = $2.70
Adding all these up, the total standard cost for one unit of product = 2.10 (labor) + 24.80
So, the correct answer is $24.80.
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