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A company makes concrete statues. Each statue requires 10 pounds of concrete at $2 per pound and 0.2 direct labor hours at $30 per hour. Overhead is assigned at the rate of $80 per labor hour. What is the standard cost to make one unit and the total that would appear on the standard cost card?

Respuesta :

Zviko

Answer:

the standard cost to make one unit is  $42

Explanation:

Standard Costing is the Cost established from the firm`s Past experience.

Standard Costing Calculation for Concrete statues

Material

Concrete (10 pounds×$2)                                $20

Labor

Direct Labor( 0.2 direct labor hours × $30)     $6

Overheads

Allocated ($80×0.2 direct labor hours)          $16

Total                                                                  $42