Question

tandard Product Costs Deerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $4 per pound and 0.5 hour of direct labor costing, $10 per hour. The variable overhead rate is $8 per direct labor hour, and the fixed overhead rate is $12 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer

Answer 1

Answer:

Standard cost=  $23

Explanation:

Giving the following information:

Production of M requires 2 pounds of material P, costing $4 per pound

0.5 hour of direct labor costing, $10 per hour.

The variable overhead rate is $8 per direct labor hour, and the fixed overhead rate is $12 per direct labor hour.

Standard cost= direct material + direct labor + total manufactuing overhead

Standard cost= 2*$4 + 0.5*10 + (0.5*8 + 0.5*12)= $23