The standard materials cost for manufacturing each camping tent is calculated based on the amount of fabric used and its price per yard. In this case, each tent requires 4 yards of lightweight synthetic fabric, and the cost per yard is $5.25.
To find the total materials cost for one tent, we can multiply the number of yards needed by the cost per yard:
- 4 yards * $5.25 per yard = $21.00
This means that the standard materials cost per tent amounts to $21.00. This figure is important for budgeting and pricing the tents to ensure profitability, as it helps the company understand the direct costs involved in producing each unit.