Question

Coronado Office Goods budgeted 12500 and produced 10900 tape dispensers during June. Wildhorse used to make the dispensers is purchased by the pound. Standards and actual costs follow for June: Standard Actual Materials 2.00 pounds @ $5.00 a pound 20800 pounds @ $4.10 per pound Labor 0.15 hours @ $15.00 per hour 2500 hours @$15.60 per hour Variable Overhead $3.25 per dispenser $36300 Fixed Overhead $1.40 per dispenser $17200 How much is the standard cost of one tape dispenser?

Answer 1

• Working

Standard DATA for		1	units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 2 pounds x 1 units)=2 pounds	$                   5.00	$               10.00
Direct labor	( 0.15 hours x 1 units)=0.15 hours	$                15.00	$                  2.25
Variable Overhead			$                  3.25
Fixed Overhead			$ 1.40
TOTAL STANDARD COST of 1 TAPE DISPENSER			$ 16.90 [Answer]

• Standard cost of one tape = $ 16.90