Ship CoProduces Storage Crates That Require 1

question 130

Multiple Choice

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 assigned at the rate of $9 per direct labor hour.What is the total standard cost for one unit of product that would appear on a standard cost card?

• A)$25.02.
• B)$11.52.
• C)$2.40.
• D)$2.52.
• E)$3.42.

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Definitions:

Homogeneous Product

A product that cannot be distinguished from competing products from different suppliers.

Differentiated Product

A product that is made distinct from similar products offered by competitors through unique features, quality, branding, or other attributes.

Monopolistic Competitor's

A market structure where many firms sell products that are similar but not identical, each having some control over its price due to product differentiation.

Long-run Demand Curve

A graphical representation that shows the quantities of a product or service consumers are willing to purchase at different prices over a period where all production factors can vary.