Riverdale Manufacturing uses a standard cost accounting system. In 2023, the company produced 45,000 units. Each unit required 2.2 standard hours of direct labor at a standard hourly rate of $16.75. Normal capacity was 99,000 direct labor hours. During the year, 216,000 pounds of raw materials were purchased at $1.15 per pound. All materials purchased were used during the year. What was the standard cost per unit of product?

Riverdale Manufacturing uses a standard cost accounting system. In 2023, the company produced 45,000 units. Each unit required 2.2 standard hours of direct labor at a standard hourly rate of $16.75. Normal capacity was 99,000 direct labor hours. During the year, 216,000 pounds of raw materials were purchased at $1.15 per pound. All materials purchased were used during the year. What was the standard cost per unit of product?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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