XYZ Company Has Budgeted Production of Item #123 for April

question 62

Multiple Choice

XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800 units, respectively.XYZ Company currently pays a standard rate of $3 per foot for raw material A and $5 per sheet for raw material B.Each unit produced requires 4 feet of raw material A and 2 sheets of raw material B.Each unit produced also requires 30 minutes of cutting direct labor time at a standard rate of $16 per hour and 2 hours of assembly direct labor time at a standard rate of $20 per hour.Manufacturing overhead is applied at the standard rate of $10 per direct labor hour. The standard cost per unit of Item #123 is:

• A)$62.
• B)$82.
• C)$87.
• D)$95.

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