Question

Required information

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A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(6 lbs. @ $8 per lb.)		42,600	lbs. @ $8.10 per lb.
Direct labor	(3 hrs. @ $15 per hr.)		20,700	hrs. @ $15.50 per hr.
Overhead	(3 hrs. @ $13 per hr.)	$	279,600
Units manufactured			7,000

(1) Compute the standard cost per unit.

Answer 1

Answer:

1)	Compute the standard cost per unit
	Direct Material= 6lbs*$8
	= $48
	Direct Labor=$15 per hr *3 hrs
	= $45
	Overhead=$13 per hr *3 hrs
	= $39
	Total cost = $132