The standard cost card for one unit of a certain finished product shows the following:$$\begin{array} { l l l }
& \text { Standard Quantity or Hours } & \text { Standard Price or Rate } \
\text { Direct materials } & 10 \text { pounds } & £ ? \text { per pound } \
\text { Direct labour } & 2.5 \text { hours } & £ 16 \text { per hour } \
\text { Variable manufacturing overhead } & 1.5 \text { hours } & £ 10 \text { per hour }
\end{array}$$
If the total standard variable cost for one unit of finished product is £85, then the standard price per pound for direct materials is

A)£1.74.
B)£4.60.
C)£5.90.
D)£3.00.

Question

The standard cost card for one unit of a certain finished product shows the following:$$\begin{array} { l l l } 
& \text { Standard Quantity or Hours } & \text { Standard Price or Rate } \
\text { Direct materials } & 10 \text { pounds } & £ ? \text { per pound } \
\text { Direct labour } & 2.5 \text { hours } & £ 16 \text { per hour } \
\text { Variable manufacturing overhead } & 1.5 \text { hours } & £ 10 \text { per hour }
\end{array}$$
If the total standard variable cost for one unit of finished product is £85, then the standard price per pound for direct materials is

A)£1.74.
B)£4.60.
C)£5.90.
D)£3.00.

Quizplus · Accepted Answer

The Answer of The standard cost card for one unit of a certain finished product shows the following:$$\begin{array} { l l l } 
& \text { Standard Quantity or Hours } & \text { Standard Price or Rate } \
\text { Direct materials } & 10 \text { pounds } & £ ? \text { per pound } \
\text { Direct labour } & 2.5 \text { hours } & £ 16 \text { per hour } \
\text { Variable manufacturing overhead } & 1.5 \text { hours } & £ 10 \text { per hour }
\end{array}$$
If the total standard variable cost for one unit of finished product is £85, then the standard price per pound for direct materials is

A)£1.74.
B)£4.60.
C)£5.90.
D)£3.00.

The Standard Cost Card for One Unit of a Certain