Gunnie Inc. produces and sells dog food. Each bag contains 20 pounds of dog food. Following additional information is provided by the company:
|Direct materials quantity standard||20 pounds per unit|
|Direct materials price standard||$0.02 per pound|
|Direct labor time standard||0.1 hour per unit|
|Direct labor rate standard||$11.50 per hour|
|Variable overhead rate standard||$2.50 per machine hour|
|Fixed overhead rate standard||$1.50 per machine hour|
|Machine hour standard||0.25 hours per unit|
Compute the standard unit cost for each bag.
Standard unit cost:
Standard cost is the budgeted cost against which the companies compare their actual performances.
Answer and Explanation:
GUNNIE INCORPORATION STANDARD UNIT COST FOR EACH BAG
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Praxis Elementary Education - Multiple Subjects (5001): Practice & Study GuideChapter 40 / Lesson 2