Standard cost

The Three Star Company produces a product known as product X. The company uses a standard costing system and provides you the following information:

Direct materials required to produce one unit of product X: 6 pounds

Standard cost of direct materials: $10 per pound

Normal wastage while producing one unit of product X: 0.5 pounds

Based on the above information, what is the standard direct materials cost per unit of product
X?

$60
$65
$50
$55

Wastage should be built into standards-there are two criterion

1) If wastage occurs before production it should be built into the purchase budget

2)it if occurs during production it needs to be built into the production budget

From the 2, the loss occurs in the production process and I restore it.

6*10+0.5*6=65

The following information belongs to John Manufacturing Company that uses a standard costing system:

Basic wage rate: $12 per hour
Fringe benefits: $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?

$35
$28
$30
$32.2

Allowance for down time and for brakes, here idle time is a part of direct production process therefore we consider both of them.

12+2*(2+0.3+0.2=35

fringes employment taxes and any taxes relating to wages and overtime are all included to direct standard cost card?

Dear Tutor, in the formation of standard cost card for labor cost per unit, I include idle time(if idle time related to production process because not idle time is relevant) such as Allowance for down time, Allowance for brakes, fringe benefits and so on.

what about then “overtime premium”?
tax and other deductions-as you said above it is irrelevant why?

Understood Dear Tutor.