Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,200 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,450 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year. What was the standard cost per unit of product? (Round answer to 2 decimal places, e.g. 2.75.) Standard cost per unit $ Solution Hi, Please find the detailed answer as follows: Standard Cost Per Unit of Product = Direct Material + Direct Labor + Manufacturing Overhead = 4.5*.92 + 12*1.60 + 6.60*1.60 = $33.90. Answer is $33.90. Thanks. .

1. Kansas Company uses a standard cost accounting system. In 2014, the company produced
28,200 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct
labor at a standard hourly rate of $12.00. Normal capacity was 50,450 direct labor hours. During
the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials
purchased were used during the year.
What was the standard cost per unit of product? (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost per unit $
Solution
Hi,
Please find the detailed answer as follows:
Standard Cost Per Unit of Product = Direct Material + Direct Labor + Manufacturing
Overhead = 4.5*.92 + 12*1.60 + 6.60*1.60 = $33.90.
Answer is $33.90.
Thanks.