In: Accounting
A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $7 per lb.) 35,400 lbs. @ $7.20 per lb. Direct labor (2 hrs. @ $16 per hr.) 13,800 hrs. @ $16.50 per hr. Overhead (2 hrs. @ $13 per hr.) $ 188,500 Units manufactured 7,000 Exercise 23-8 Standard unit cost; total cost variance LO C2 (1) Compute the standard cost per unit.
Standard cost per unit = Direct materials + Direct labour + Overhead
= (5*7) + (2*16) + (2*13)
= 35 + 32 + 26
= 93