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

question 68

Multiple Choice

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

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

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