The Standard Cost Card for One Unit of a Finished

question 68

Multiple Choice

The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

• A) $2
• B) $3
• C) $4
• D) $5

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Definitions:

Factory Overhead

Costs tied to manufacturing processes, excluding those for direct labor and materials.

Office Utilities

Expenses associated with the essential services used in an office, such as electricity, water, gas, and internet.

Selling and Administrative Expense

Operating expenses that are not directly tied to production, including costs related to sales, marketing, and general administration of a company.

Direct Materials

The raw materials directly traceable to the manufacturing of a product, forming a significant part of the production cost.