Question

Practice-CIl 23. J Q 23.32: You have been asked to determine the standard cost for each personalized stepping stone manufacturedb a stone and tile company. Each customized stone requires one stone, 3 ounces of paint, 45 minutes of direct labor engraving, painting, packaging), and a box for packaging. You receive the following cost information: Large stepping stones, 25-pack Small stepping stones, 25-pack Direct labor, per hour aint, 1 gallon (128 oz.) $375.00 250.00 18.50 5.99 Boxes, 100-pack The company applies overhead at a rate of $12.40 per direct labor hour, and fringe benefits for workers are an additional 25% of wages, what is the standard cost of producing one small stepping stone? 37.50 A $10.52 B $27.86 C $17.34 D $37.16

Answer 1

Answer is option B $27.86

Standard cost = (375/25)+(250/25)+(18.50*45/60)+(5.99*3/128)+(37.50/100)+(18.50*45/60*25%)=$27.86