Question

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Use the following information for the Quick Study below.

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BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $20 per kg and 0.20 direct labor hours at $18 per hour. Overhead is assigned at the rate of $40 per direct labor hour.

QS 23-5 Standard cost card LO C1

What amounts would appear on a standard cost card for BatCo?
  

Required information

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $20 per kg and 0.20 direct labor hours at $18 per hour. Overhead is assigned at the rate of $40 per direct labor hour.

QS 23-5 Standard cost card LO C1

What amounts would appear on a standard cost card for BatCo?
  

Answer 1

• All working forms part of the answer
• Note: Same exact question is posted twice above.
• Working:

Standard DATA for		1	units
	Quantity per unit (SQ)	Rate (SR)	Standard Cost
Direct Material – Aluminium	2 kg	$              20.00 per kg	$                   40.00
Direct labor	0.2 hours	$              18.00 per hour	$                     3.60
Variable Overhead	0.2 hour	$              40.00 per hour	$                     8.00
TOTAL Standard Cost			$ 51.60

• ANSWER: Amounts that would appear on a standard cost card for BatCo = $ 51.60 per unit.