The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Question

The standard cost card for one unit of a finished product shows the following:  If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Quizplus · Accepted Answer

Standard variable cost per unit = Standard direct materials cost per unit + Standard direct labor cost per unit + Standard variable manufacturing overhead cost per unit
$78 per unit = (12 feet per unit × SP) + (1.5 hours per unit × $12 per hour) + (1.5 hours per unit × $8 per hour)
$78 per unit = (12 feet per unit × SP) + ($18 per unit) + ($12 per unit)
12 feet per unit × SP = $78 per unit - $18 per unit - $12 per unit
12 feet per unit × SP = $48 per unit
SP = $48 per unit ÷ 12 feet per unit
SP = $4 per foot

The Standard Cost Card for One Unit of a Finished