Cost Accounting Quiz: Standard Cost Per Unit

Delta Corporation uses standard costing for its chemical processing operation. Each batch requires 180 liters of Chemical A at $4.25 per liter and 220 liters of Chemical B at $6.80 per liter. Due to evaporation losses during processing, an additional 3% of Chemical A and 7% of Chemical B must be included in the standard. If each batch yields 850 finished units, what is the standard direct materials cost per unit?

Atlas Corporation manufactures widgets using a standard costing system. Direct labor standards call for 2.8 hours per unit at a rate of $16.50 per hour. Variable overhead is applied at $7.25 per direct labor hour, while fixed overhead is applied at $4.80 per direct labor hour based on normal capacity of 25,000 direct labor hours. What is the total standard cost per unit for direct labor and overhead combined?

Management wants to set a practical standard for the direct material cost of a product. Ideal engineering standards specify 5.0 kg of material per unit at a price of $10.00/kg available only from bulk, undiscounted purchases. A practical standard would include an allowance for 0.2 kg of normal waste and use a more realistic price of $10.50/kg from a regular supplier. What is the direct material cost per unit based on a practical standard?

Phoenix Industries produces automotive parts using standard costing. The engineering department has established that each finished unit should require 4.2 kilograms of Material X at $12.60 per kilogram and 1.8 kilograms of Material Y at $18.40 per kilogram. Due to normal waste and spillage, an additional 5% of total material cost should be added to the standard. What is the standard direct materials cost per unit?

PQR Company applies variable manufacturing overhead based on machine hours. For the upcoming period, the company budgeted total variable overhead of $150,000, 25,000 machine hours, and 30,000 direct labor hours. Engineering analysis indicates that producing one finished unit requires 0.40 standard machine hours. What is the standard variable overhead cost per finished unit?

A time-and-motion study for producing one unit of Product Delta yielded the following data: direct assembly and machine setup time combined, 60 minutes; allowance for breaks and personal needs, 20% of assembly and setup time; and final quality control inspection, 3 minutes. What are the standard direct labor hours per unit of Product Delta?

A company is developing the standard price for a key raw material, Part #AX-5. The supplier's list price is $25.00 per kilogram. The company receives a 4% trade discount on all purchases. Non-refundable shipping costs are $1.20 per kilogram. Each shipment undergoes a mandatory quality inspection costing $300 for every 500-kilogram batch. What is the standard cost per kilogram for Part #AX-5?

ZY Corp manufactures a finished product that requires 4.2 kilograms of a specific chemical after processing. During production, it is considered normal for 10% of the chemical input to be lost through evaporation. Additionally, an unavoidable residue of 0.3 kilograms per unit must be filtered out and disposed of. What is the standard quantity of the chemical (in kilograms) that should be established for one finished unit?

A manufacturing process requires a team of two workers: one senior technician and one junior apprentice. The standard time to complete one batch is one hour for the team. The senior technician's base rate is $32 per hour, and the junior apprentice's is $20 per hour. The company incurs payroll taxes of 8% and fringe benefit costs of 12%, both calculated on the base wage rates. What is the standard direct labor cost to be set for one batch?

A company currently applies fixed overhead at a rate of $20 per direct labor hour, based on budgeted FOH of $500,000 and a denominator volume of 25,000 DLH. For the next budget period, management has revised the denominator volume to 20,000 DLH, while budgeted fixed overhead will remain unchanged. Each unit requires 0.8 standard DLH. What will be the new standard fixed overhead cost per unit?

The partially complete standard cost card for a product shows the following: Direct materials, $40; Direct labor, ?; Variable overhead, $12; Fixed overhead, $18; Total standard cost, $100. If the standard direct labor rate is $25 per hour, what is the standard number of direct labor hours per unit?

Finch Co. uses a combined overhead rate allocated on direct labor hours. Budgeted variable overhead is $60,000, and budgeted fixed overhead is $150,000. The denominator activity level is 30,000 direct labor hours. The standard for one unit of product is 1.5 direct labor hours. What is the total standard manufacturing overhead cost per unit?

A production standard requires 4 direct labor hours per unit. Due to a predictable evening shift schedule, the standard specifies that 3 of these hours will be at the regular rate of $24 per hour, and 1 hour will be at an overtime premium rate of time-and-a-half. What is the standard direct labor cost for one unit?

Sterling Corp. applies fixed manufacturing overhead based on direct labor hours. The company's annual budget includes $960,000 of fixed manufacturing overhead. The denominator level of activity is set at 80,000 direct labor hours, which is the plant's practical capacity. The standard labor requirement for one unit of product is 0.5 direct labor hours. During the year, the company actually worked 75,000 hours. What is the standard fixed overhead cost per finished unit?

A company is developing standards for the prime cost of a new product. Each unit requires 2.85 meters of material in the finished good, but a normal scrap rate of 5% of materials started is expected. The standard price of the material is $20 per meter. The standard for direct labor is 1.5 hours per unit at a standard rate of $22 per hour. What is the total standard prime cost per unit?

A finished product, L-200, is made from two raw materials: Alpha and Beta. The standard usage and prices are as follows: Alpha requires 3 pounds per unit at a standard price of $4 per pound. Beta requires 2 pounds per unit at a standard price of $7 per pound. What is the total standard direct material cost for one unit of L-200?

An engineering change is proposed for a product. The old standard required 4 kg of material at $10/kg and 2 DL hours at $25/hr. The new standard would require 3.5 kg of material at $10/kg but 2.2 DL hours at the same $25/hr rate. What is the expected change in total standard prime cost per unit resulting from this proposal?

A company's standard for raw material includes a cash discount for prompt payment, as its policy is to always take such discounts. The material's invoice price is $40.00 per liter. The supplier's terms are 2/10, n/30. Shipping costs are $1.50 per liter, and receiving and handling costs are $0.50 per liter. What is the standard price per liter for this material?

A liquid raw material is purchased for $8.00 per liter. The material must be shipped in special non-refundable containers that cost $50 each and hold 200 liters. What is the total standard cost per liter for this material, including the cost of the container?

A chemical process begins with 10 kilograms of raw material costing $5 per kilogram. The process is expected to yield 80 good units of finished product. No other materials are added. What is the standard direct material cost per good finished unit?