Answer:
Standard cost= $3.42
Explanation:
Giving the following information:
Ship Co. produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per hour. Overhead is applied at the rate of $9 per direct labor hour.
To calculate the standard cost we need to use the following formula:
Standard cost= standard direct material + standard direct labor + allocated overhead
Standard cost= 1.2*0.85 + 0.1*15 + 9*0.1
Standard cost= $3.42
