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

Question 45

Multiple Choice

Using the following information,compute the standard unit cost of a 20 pound bag of dog food:  Direct materials quantity standard 20 pounds per unit  Direct materials price standard $0.02 per pound  Direct labor time standard 0.1 hour per unit  Direct labor rate standard $11.60 per hour  Variable overhead rate standard $2.50 per machine hou  Fixed overhead rate standard $1.50 per machine hou  Machine hour standard 0.25 hours per unit \begin{array}{ll}\text { Direct materials quantity standard } & 20 \text { pounds per unit } \\\text { Direct materials price standard } & \$ 0.02 \text { per pound } \\\text { Direct labor time standard } & 0.1 \text { hour per unit } \\\text { Direct labor rate standard } & \$ 11.60 \text { per hour } \\\text { Variable overhead rate standard } & \$ 2.50 \text { per machine hou } \\\text { Fixed overhead rate standard } & \$ 1.50 \text { per machine hou } \\\text { Machine hour standard } & 0.25 \text { hours per unit }\end{array}


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

Correct Answer:

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