Standard Cost Calculator

Formula

The formula to calculate the Standard Cost is:

\[ \text{STC} = \text{SR} \times \text{SQ} \]

Where:

$\text{STC}$ is the Standard Cost ($)
$\text{SR}$ is the standard rate ($/unit)
$\text{SQ}$ is the standard quantity (units)

What is Standard Cost?

Standard Cost is the expected cost of a product or service, calculated by multiplying the standard rate by the standard quantity. It is used in budgeting and cost control to measure performance and efficiency.

Example Calculation

Let's assume the following values:

Standard Rate (SR) = $10 per unit
Standard Quantity (SQ) = 50 units

Using the formula to calculate the Standard Cost (STC):

\[ \text{STC} = 10 \times 50 = 500 \text{ dollars} \]

The Standard Cost is $500.