Roncy Manufacturing uses enhanced powder plastics (EPP)to manufacture high-pressure boards,Dura-Plastic.Information concerning its operation in June was as follows:
The standard cost per ounce of EPP is:

Question

Roncy Manufacturing uses enhanced powder plastics (EPP)to manufacture high-pressure boards,Dura-Plastic.Information concerning its operation in June was as follows: 
The standard cost per ounce of EPP is:

Quizplus · Accepted Answer

To calculate the standard cost per ounce of EPP, we need to add the cost of materials, labor, and overhead.

Materials cost per ounce = $1.80/16 ounces = $0.1125/ounce 
Labor cost per ounce = $26,500/10,000 ounces = $2.65/ounce 
Overhead cost per ounce = $71,200/10,000 ounces = $7.12/ounce

Total standard cost per ounce = $0.1125 + $2.65 + $7.12 = $6.8825

Therefore, the closest choice is C) $6.65.

Roncy Manufacturing Uses Enhanced Powder Plastics (EPP)to Manufacture High-Pressure Boards,Dura-Plastic