Standard Cost
PRODUCT
MATERIAL
LABOR
OVERHEAD
SELLING PRICE
W0075C
$33.00
$9.90
$23.10
$100.00
W0033C
25.00
7.50
17.5
80.00
W0005X
35.00
10.50
24.50
130.00
W0007X
75.00
11.25
63.75
175.00
Selected Operating Data
Average output per month = 2,400 units
Average machine utilization = 63%
Average percentage of production set to rework department = 5% (mostly from Winding Department
Average no. of rejected units awaiting rework = 850 (mostly from Winding Department)
Table 3 Standard Cost and Selling Price