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Kansas Company uses a standard cost accounting system. In 2014, the company produced 27,800 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $11.00. Normal capacity was 50,330 direct labor hours. During the year, 131,000 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year.Warning
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Explanation / Answer
Standard Cost per unit of the product Direct Material (7*.9) 6.30 Direct Labor (1.6*11) 17.60 Standard Cost per unit = 23.90
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