The Snowman Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $10.00.What is the standard direct material cost for each mug produced?
A)$9.00
B)$10.00
C)$13.20
D)$32.00

Question

The Snowman Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $10.00.What is the standard direct material cost for each mug produced?
A)$9.00 
B)$10.00 
C)$13.20 
D)$32.00

Quizplus · Accepted Answer

The Answer of The Snowman Company makes mugs for which the following standards have been developed:  Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $10.00.What is the standard direct material cost for each mug produced?
A)$9.00 
B)$10.00 
C)$13.20 
D)$32.00

The Snowman Company Makes Mugs for Which the Following Standards