Question

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?

Short answer

$33 would appear on the standard cost card of the company.

Step-by-step solution

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.

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