Figure 2
Rax 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 2. Rax's variable standard cost per unit would be
A) £78
B) £192
C) £246
D) £222

Question

Figure 2
Rax 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 2. Rax's variable standard cost per unit would be
A) £78 
B) £192 
C) £246 
D) £222

Quizplus · Accepted Answer

Rax's variable standard cost per unit would be the sum of direct materials and direct labor costs per unit, which are £150 and £96, respectively, for a total of £246. Option C is the only one that matches this calculation.

Figure 2 Rax Company Has Developed the Following Standards for One of One