Ewing Corporation's Controller Has Developed the Cost and Usage Data

question 37

Multiple Choice

Ewing Corporation's controller has developed the cost and usage data listed below in preparation of standard unit cost information for the coming year. $\begin{array}{lr} \text { Direct materials quantity standard } & 3 \text { pounds per product } \\\text { Direct labor time standard } & 5 \text { hours per product } \\\text { Direct materials price standard } & \$ 10 \text { per pound } \\\text { Direct labor rate standard } & \$ 9 \text { per hour } \\\text { Standard variable overhead rate } & \$ 5 \text { per labor hour } \\\text { Standard fixed overhead rate } & \$ 10 \text { per labor hour }\end{array}$
The standard unit cost for direct materials is

• A) $30.
• B) $10.
• C) $50.
• D) $27.

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Definitions:

Liquor Sales

The commercial activity of selling alcoholic beverages, particularly spirits, usually regulated by governmental laws.

Moving Averages

A statistical technique used to smooth out short-term fluctuations and highlight longer-term trends or cycles in data.

Daily Sandwich Sales

The number of sandwiches sold in a specific location or establishment over the span of one day.

Sandwich Shop

A food establishment specializing in the preparation and sale of sandwiches.