The following information belongs to John Manufacturing Company that uses a standard costing system:
• Basic wage rate:Rs.12 per hour
• Fringe benefits: Rs. 2 per hour
• Basic time: 2 hours per unit
• Allowance for down time: 0.3 hours per unit
• Allowance for brakes: 0.2 hours per unit
Based on the above information, what is the standard direct labor cost per unit?

Related MCQs

• During the month of December actual direct labor cost amounted to Rs. 39,550, the standard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was:
• During the month of January, the standard cost of actual hours worked amounted to Rs.25, 000, the standard direct labor rate was Rs.10 per hour and the direct labor efficiency variance amounted to Rs.1, 000 favorable. The standard hours allowed for actual production were:
• Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing.
• Which of the following is not likely to be a reason of unfavorable direct labor efficiency variance?
• Which of the following is not likely to be a reason of unfavorable direct labor rate variance?
• Flexible manufacturing systems (FMS) are reported to have a number of benefits. Which is NOT a reported benefit of FMS?
• The valuation of stock in marginal costing as compared to absorption costing is
• The “standard hours allowed” or “standard quantity allowed” is equal to:
• A 'direct' cost is a cost that is classified by:
• Match the following general applications of performance assessment with their specific purposes I. Administrative Uses/ Decisions ----- A. Performance Feedback II. Documentation ------ B. Lay - offs III Organizational Maintenance/ Objectives ---- C. Helping to meet legal requirements IV. Developmental Uses ----- D. Evaluation of HR systems