Staples - Johnstown 590 Galleria Dr, Johnstown PA 15904 Phone Number: (814) 262-9096
The distribution of manufacturing overhead costs to individual product unit, or production batches generally, requires a base or a cost driver, to which reference a rate, known as material burden rate applies. Material burden is the amount of manufacturing overhead costs that a unit of the base carries.
Standard cost of material per unit = Standard quantity to produce one unit Ã Standard price of materials per unit. = 4.00 lbs. Ã $5.70. = $22.80. In our example, the standard direct materials cost to manufacture one computer case is $22.80.