Question

Weather Balloons, Inc., makes reusable weather-detecting balloons. Because of a recent recession, management has ordered that standard costs be recomputed. New direct materials price standards are $600 per set for electronic components and $13 per square meter for heavy-duty canvas. Direct materials quantity standards include one set of electronic components and 100 square meters of heavy-duty canvas per balloon. Direct labor time standards are 26 hours per balloon for the Electronics Department and 21 hours per balloon for the Assembly Department. Direct labor rate standards are $20 per hour for the Electronics Department and $15 per hour for the Assembly Department. Standard overhead rates are $18 per direct labor hour for the standard variable overhead rate and $10 per direct labor hour for the standard fixed overhead rate. Compute the total standard unit cost of one weather balloon.



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  • CreatedMarch 26, 2014
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