Ship Co. produces storage crates that require 1.2 meters of material at $.85 per meter and 01 direct labor hours at $15.00 per hour Overhead is applied at the rate of $9 per direct labor hour What is the total standard cost for one unit of product that would appear on a standard cost card?

$3.42

Step-by-step explanation:

Meters of material required = 1.2 meters

Cost per meter of material = $0.85

Direct labor hours = 0.1

Cost of direct labor per hour = $15

Overhead rate = $9 per direct labor hour

Standard cost per unit of product :

(Direct material cost per unit + direct labor cost per unit + overhead cost per unit)

Direct material cost per unit :

Material needed × cost per meter = (1.2 × $0.85) = $1.02

Direct labor cost per unit :

Direct labor hour × cost per hour = ( 0.1 × $15) = $1.5

Overhead cost:

0.1 * $9 = $0.9

Standard cost :

($1.02 + $1.5 + $0.9) = $3.42

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