Question

Given the following, compute the standard cost per widget. Direct materials per unit 4 pounds Direct material cost $1.25 per pound Direct labor per unit 1.5 hours Direct labor rate $10.00 per hour Variable overhead rate $4.00 per hour Multiple choice question. $11.00 $21.00 $26.00 $20.00

Answer 1

The standard cost per widget if Direct materials per unit 4 pounds and Direct material cost $1.25 per pound is: $26.00.

Standard cost per weight

Using this formula

Standard cost per weight=Materials+ Labor+ Overhead

Let plug in the formula

Standard cost per weight= (4 pounds × $1.25) + (1.5 hours × $10.00) +(1.5 hours × $4.00)
Standard cost per weight=$5+$15+$6

Standard cost per weight=$26

Therefore the standard cost per widget if Direct materials per unit 4 pounds and Direct material cost $1.25 per pound is: $26.00.

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