Question
The Starbright Corporation has compiled the following data. The company intends to use this information to develop standard costs per unit for its single product:
The Starbright Corporation has compiled the following data. The company intends to use this information to develop standard costs per unit for its single product: Direct materials = $50 per ton Direct labor = $12.75 per hour Variable manufacturing overhead = $5 per direct labor hour Fixed manufacturing overhead = $18,700 Expected production = 1,700 units Each unit of the companys single product requires 2.5 tons of direct materials and 22.5 hours to manufacture. What is the standard cost for direct labor per unit for Starbright's single product? (Round your answer to the nearest dollar.)
- $285 per unit
- $287 per unit
- $180 per unit
- $100 per unit
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