PeakProducts manufactures water bottles that require 0.8 kg of plastic at $4.25 per kg and 0.5 direct labor hours at $16.40 per hour. Factory overhead is applied at the rate of $11.50 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card? a. $3.40 b. $8.20 c. $14.95 d. $17.15 e. $20.55

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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PeakProducts manufactures water bottles that require 0.8 kg of plastic at $4.25 per kg and
0.5 direct labor hours at $16.40 per hour. Factory overhead is applied at the rate of $11.50
per direct labor hour. What is the total standard cost for one unit of product that would
appear on a standard cost card?
a. $3.40
b. $8.20
c. $14.95
d. $17.15
e. $20.55
Transcribed Image Text:PeakProducts manufactures water bottles that require 0.8 kg of plastic at $4.25 per kg and 0.5 direct labor hours at $16.40 per hour. Factory overhead is applied at the rate of $11.50 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card? a. $3.40 b. $8.20 c. $14.95 d. $17.15 e. $20.55
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