Figure 1
Max Company has developed the following standards for one of its products:
The following activities occurred during the month of October:
The company records materials price variances at the time of purchase.

-Refer to Figure 1. Max's variable standard cost per unit would be
A) £392
B) £336
C) £296
D) £152

Question

Figure 1
Max Company has developed the following standards for one of its products:
The following activities occurred during the month of October:
  The company records materials price variances at the time of purchase.
 
-Refer to Figure 1. Max's variable standard cost per unit would be
A) £392 
B) £336 
C) £296 
D) £152

Quizplus · Accepted Answer

Max's variable standard cost per unit is £392 because it includes the cost of direct materials, direct labor, and variable manufacturing overhead.

Figure 1 Max Company Has Developed the Following Standards for One of One