Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fabric at $4.00 per yard Standard Labor: 1 hour at $5.75 per hour Factory Overhead: $2.90 per direct labor hour

The standard cost for one hat is $ 11.65

Explanation:

The standard cost of a hat is determined after consider all the manufacturing costs components in it. Based on the data available, it is calculated as under:

Standard Material 3/4 yards @ $ 4 per yard $ 3.00

Standard Labor 1 hour at $ 5.75 per hour $ 5.75

Factory overhead $ 2.90 per direct labor hour $ 2.90

Standard cost for one hat $ 11.65

The factory overhead has been considered at one hour, which is the direct labor hour in the standard calculation.