Ship CoProduces Storage Crates That Require 1

question 148

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 applied 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:

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily reflect its market value.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having voting rights and a claim on profits.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or stock.