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The standard cost card for one unit of a finished product shows the following: Standard Quantity or Hours Standard Price or Rate Direct materials 12 feet $ ? per foot Direct labor 1.5 hours $ 12 per hour Variable manufacturing overhead 1.5 hours $ 8 per hour If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Respuesta :

Answer:

Direct Material per foot = $4

Explanation:

total variable = Direct material + labor + variable overheard

$78 = D.M+ ( 1.5 hrs * $12) + ( 1.5 hrs *$8)

$78 = D.M + $18 + $12

$78 = D.M + $30

D.M = $78 - $30

D.M = $48

D.M (per foot)= $48/12 = $4

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