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The Starbright Corporation has compiled the following data.The company intends to use this information to develop standard costs per unit for its single product:
Direct materials = $50 per ton
Direct labor = $12.75 per hour
Variable manufacturing overhead = $5 per direct labor hour
Fixed manufacturing overhead = $18,700
Expected production = 1,700 units
Each unit of the company's single product requires 2.5 tons of direct materials and 22.5 hours to manufacture.
-What is the standard cost for direct materials per unit for Starbright's single product?
A) $50 per unit
B) $100 per unit
C) $150 per unit
D) $125 per unit
Correct Answer:
Verified
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