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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Definitions:

Pet Groomer

A professional who cleans, trims, and styles pets' coats, nails, and fur to maintain their appearance and hygiene.

Lawn Care

The maintenance and management of gardens, yards, or other grassy areas to ensure healthy growth and aesthetic appeal.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Partnership

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.