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What would be the standard cost of direcet material, standard cost of direct labor and standard cost of manufacturing overhead? Direct Materials - There are
What would be the standard cost of direcet material, standard cost of direct labor and standard cost of manufacturing overhead?
Direct Materials - There are 18,900 grams of sand in one finished unit (case). Sand is purchased by metric tons (one million grams). The cost from Sharpe's main supplier is $9.95 per metric ton, shipped locally at a cost to Sharpe of $17.85 per metric ton.
Direct Labor - Each case is expected to require 0.42 direct labor hours to complete. This amount comes from process analysis at Sharpe, and does not include setup and downtime, where are expected to average 0.01 hours per case. Sharpe pays its direct laborers an hourly wage of $19.00. Payroll taxes and benefits average $4.85 per direct labor hour.
Manufacturing overhead - There are $378,000 overhead costs expected in 2022, sales are budgeted at $55,000 cases.
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