Question

If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Answer 1

Answer:

D. $4

Explanation:

Note: The full question is attached as picture below

Particulars                                             Amount

Direct Labor cost                                    $18.00

(1.5*12)

Variable Manufacturing overhead         $12.00

(1.5 * 8)

Standard variable cost excl direct       $30.00

material cost ($18 +$12)                        

Standard variable cost including         $78.00

direct material cost

Direct material cost = $78 - $30 = $48.00

Standard price per foot = $48/12 = $4