I need help with the following managerial accounting question involving standard

Question

I need help with the following managerial accounting question involving standard cost per unit.

Problem 11-6 (Part Level Submission) XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.50-liter can of solution call for 0.74 liters of material and 4 hours of labor. (0.74 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.50. The standard cost per hour for labor is $13.00. Overhead is applied at the rate of $15.42 per can. Expected production is 7,300 cans with fixed overhead per year of $30,076 and variable overhead of $11.30 per unit (a 0.50-liter can). During 2018, 7,900 cans were produced; 13,900 liters of material were purchased at a cost of $58,380; 10,000 liters of material were used in production. The cost of direct labor incurred in 2018 was $396,000, based on an average actual wage rate of $11 per hour. Actual overhead for 2018 was $113,800 (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost per unit s LINK TO TEXT LINK TO TEXT

Explanation / Answer

Standard cost Direct materials (.74*2.50)= 1.85 direct labor (4*13)= 52 overhead 15.42 Standard cost per unit 69.27

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