Question

A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(7 lbs. @ $9 per lb.)		56,500	lbs. @ $9.10 per lb.
Direct labor	(3 hrs. @ $16 per hr.)		23,700	hrs. @ $16.50 per hr.
Overhead	(3 hrs. @ $11 per hr.)	$	270,100
Units manufactured			8,000

(1) Compute the standard cost per unit.

	Direct materials Direct labor Overhead Total $0

Answer 1

The Standard cost per unit.

Direct materials = $63.00 per unit [7 lbs x $9 per lb]

Direct labor = $48.00 per unit [3 hrs x $16 per hr]

Overhead = $33.00 per unit [3 hrs x @ $11 per hr]

Total = $144.00 per unit