EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

8. Standard Standard Quantity or Price or Hours Rate Standard Cost Direct materials... 2.8 yards

¹

$6 per yard $16.80 Direct labor... 1.4 hours

²

$7.50 per hour

³

10.50 Variable manufacturing overhead ... 1.4 hours $3 per hour 4.20 Total standard cost... $31.50

1

From part 3.

2

1,400 standard hours (from part 5) ÷ 1,000 backpacks = 1.4 hours per backpack.

3

From part 5. Problem 10-27 (75 minutes)