Weather Aerodynamics, Inc., makes electronically equipped weather detecting balloons for university meteorology departments. Because of recent nationwide inflation, the company's management has ordered that standard cost be recomputed. New direct materials price standards are $600 per set for electronic components and $13.50 per square meter for heavy-duty canvas. Direct materials quantity standards include one set of electronic components and 100 square meters of heavy-duty canvas per balloon. Direct labor standards are 26 hours per balloon for the electronics department and 19 hours per balloon for the Assembly department. Direct labor rate standards are $11 per hour for the electronics department and $10 per hour for the Assembly department. Standard overhead rates are $16 per direct labor hour for the standard variable overhead rate and $12 per direct labor hour for the standard fixed overhead rate.
Using these production standards, compute the standard unit cost of one weather balloon.© BrainMass Inc. brainmass.com July 20, 2018, 10:19 pm ad1c9bdddf
In computing the standard cost we calculate the standard cost of direct material, direct labor and overhead.
The standard cost of ...
The solution explains how to calculate the standard unit cost