The Following Standard Cost Card Is Provided for Navid Company's

question 110

Multiple Choice

The following standard cost card is provided for Navid Company's Product A: $\begin{array}{l}\text { Direct material (2 lbs. ( } \$ 5.00 \text { per lb.) }&\$10.00\\\text { Direct labor (1 hr @ \$5.00 per hr.) } &5.00\\\text { Variable overhead (1 hr. @ \$4.00 per hr.) } &4.00\\\text { Fixed overhead (1 hr. @ } \$ 2.00 \text { per hr.) } &\underline{2.00}\\\text { Total standard cost per unit }&\underline{\$21.00}\end{array}$
The fixed overhead rate is based on total budgeted fixed overhead of $15,000. During the period, the company produced and sold 5,300 units at the following costs:
Direct material 15,000 pounds @ $4.50 per pound
Direct labor 5,050 hours @ $5.00 per hour
Overhead $29,970The standard manufacturing cost per unit is $27.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

• A) $23.15.
• B) $20.65.
• C) $21.20.
• D) Cannot be determined from the information provided.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Base Rate Fallacy

The tendency to ignore or underestimate statistical generalizations or probabilities in the evaluation of risks or likelihoods, often focusing on specific examples or narratives instead.

Diagnostic Psychiatric Label

A term used in psychiatry to describe a classification given to a specific pattern of behaviors or psychological symptoms.