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Found in: Page 968

### Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

# BatCo makes metal baseball bats. Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at$20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. What amounts would appear on a standard cost card for BatCo?$33 would appear on the standard cost card of the company.

See the step by step solution

## Step 1: Meaning of Cost Card

A cost card is an approach used in the traditional costing system, in which costs such as direct material, labor, and overheads required to produce a single unit of a product are recorded.

## Step 2: Amounts to be appeared on standard cost card

 Particulars Units required Cost per unit ($) Total ($) Material 1 kg 18 18 Labor 0.25 hours 20 5 Overhead 0.25 hours 40 10 Total cost \$33