Ship Co Produces Storage Crates That Require 1

question 75

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

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Definitions:

Costs

Expenses incurred in the production of goods or services, including but not limited to materials, labor, and overhead.

Revenues

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Difference Approach

A method used in various fields to understand or analyze differences between entities or phenomena, often to derive specific conclusions or solutions.

Dallas Stores

Retail outlets or branches located in Dallas, typically referring to their specific performance, strategies, or relevancy in market analysis.