Answer:
The standard cost of Bramble's product is $69.5 per unit.
Step-by-step explanation:
We can calculate the standard cost per unit of Bramble's product as the sum of the material cost, direct labor cost and overhead cost.
Each unit of product uses 2 pounds of materials, that cost $6 per pound. So the material cost is:
[tex]MC=2\,lb/u\cdot6\,\$/lb=12\,\$/u[/tex]
Each unit needs 2.5 direct labor hours, and they have a cost of $11 per hour, so the direct labor cost is:
[tex]LC=2.5\,h/u\cdot11\,\$/h=27.5\,\$/u[/tex]
The overhead costs are calculated in this case as $12 per direct labor hour. As 2.5 labor hours are needed per unit, we have:
[tex]OC=2.5\,h/u\cdot 12\,\$/h=30\,\$/u[/tex]
The standard cost is then:
[tex]C=MC+LC+OC=12+27.5+30=69.5\,\$/u[/tex]
