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Janitor Supply produces an industrial cleaning powder that requires 49 grams of material at $0.20 per gram and 0.40 direct labor hours at $14.00 per hour. Overhead is applied at the rate of $16 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

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Answer:

Standard cost = $21.8

Explanation:

The total standard cost of one unit

= Direct material cost + Direct Labour cost + Overhead cost

Direct Material = 49× $0.20 = 9.8

Direct labour cost = 0.40× $14 = 5.6

Overhead cost =  $16× 0.40= 6.4

Standard cost = 9.8 +  5.6 + 6.4  = $21.8

Standard cost = $21.8

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