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:

Mass Production

The manufacturing of large quantities of standardized products, often using assembly lines or automated technology, to achieve economies of scale.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, characterized by the transition from manual production methods to machine-based manufacturing processes.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by a shift from manual and artisanal work to mechanized manufacturing processes.

Pre-industrial Societies

Societies characterized by economies based on agriculture, fishing, and hunting, with limited technology and industrial development.