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Nationalic makes one product, product A. Two types of labor are involved to produce product A; skilled and semi-skilled labor. The cost of skilled labor is €9 per hour and for semi-skilled is €6 per hour. To produce one unit of A, you need 4 hours of semi-skilled labor and 8 hours of skilled labor.
Product A is made up of three different direct materials, as follow:
Type Quantity Cost
Material X 7 kilograms €1
Material Y 5 liters €1
Material Z 3 meters €3
Required
Problem 1: Prepare a standard cost card for product A.
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