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

question 2

Multiple Choice

Using the following information, compute the standard unit cost of a 20 pound bag of dog food: $\begin{array}{lr}\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 standerd }&\text {\( \$ 11.60 \) per hour }\\\text {Variable overheadrate standard }&\text {\( \$ 2.50 \) per machine hour }\\\text { Fixed overhead rate standard}&\text {\( \$ 1.50 \) per machine hour }\\\text {Machine hour standard }&\text {0.25 hours per urit }\\\end{array}$

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

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