equired information The following information applies to the questions displayed

Question

equired information The following information applies to the questions displayed below The Starbright Corporation has compiled the following data. The company intends to usehimbon to devetop standard cosr t single product Direct materials = $45 per ton Direct labor $12.25 per hour Variable manufacturing overhead = $4.5 per direct labor hour Fixed manufacturing overhead $18,200 Expected production = 1.450 units Each unit of the company's single product requires 2.0 tons of direct materials and 22.0 hours to manufacture. What is the standard cost for direct labor per unit for Starbright's single product? (Round your answer to the nearest dollar.) Multiple Choice $83 per unit $270 per unit $163 per unit

Explanation / Answer

Standard rate for direct labour per hour = $12.25 per hour.

Standard direct labour hours required to produce per unit of product = 22 hours

Standard cost of direct labour per unit = 22 hours *  $12.25 per hour. = $269.50 or $270 (ie option b)

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