Janitor Supply produces an industrial cleaning powder that requires 40 grams of material at $0.10 per gram and .25 direct labor hours at $12.00 per hour. Overhead is applied at the rate of $18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?
A) $7.00.
B) $8.50.
C) $11.50.
D) $7.50.
E) $25.00.
C) $11.50.
Explanation: Direct material per unit = 40g * $0.10/g = $4.00
Direct labor per unit = .25 hours * $12/hr. = $3.00
Overhead per unit = .25 hours * $18/hr. = $4.50
Total standard cost = $4.00 + $3.00 + $4.50 = $11.50 per unit
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