Using the Following Information,compute the Standard Unit Cost of a 20

question 71

Multiple Choice

Using the following information,compute the standard unit cost of a 20 pound bag of dog food: $\begin{array}{ll}\text { Direct materials quantity standard } & 20 \text { pounds per unit } \\\text { Direct materials price standard } & \$ 0.02 \text { per pound } \\\text { Direct labor time standard } & 0.1 \text { hour per unit } \\\text { Direct labor rate standard } & \$ 11.60 \text { per hour } \\\text { Variable overhead rate standard } & \$ 2.50 \text { per machine hou } \\\text { Fixed overhead rate standard } & \$ 1.50 \text { per machine hou } \\\text { Machine hour standard } & 0.25 \text { hours per unit }\end{array}$

• A) $2.56
• B) $2.22
• C) $2.16
• D) $2.81

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Definitions:

Dividend Paying

Describes stocks or securities that regularly distribute a portion of the issuing company's earnings to shareholders.

Strike Call

A term likely meant to be "Call Strike Price," which is the set price at which an option holder can buy an underlying asset.

Interest Rate

Interest Rate is the cost of borrowing funds or the return on investment for savings, expressed as a proportion of the principal, usually displayed on an annual basis.

Expiration

The point in time when a financial contract such as an option or futures contract ceases to exist.