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Janitor Supply produces an industrial cleaning powder that requires 40 grams of material at $0.10 per gram and .25 direct labor hours at $12.00 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?

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Nyctalus

Answer: $11.50

Explanation: As we know that :-

Total standard cost for one unit = standard material cost + standard direct labor cost + standard overhead cost

where,

standard material cost =  (40 grams) * ($0.10) = $4

standard direct labor cost = (0.25 hrs) * ($12) = $3

standard overhead cost   =   (0.25 hrs) * ($18) = $4.5

therefore :-

Total standard cost for one unit = $4 + $3 + $4.5 = $11.5

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