Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:
Actual Data Budgeted and Standard Data
Produced 12,400 units Budgeted units 12,500 units
Materials purchased 4,650 lbs. for a total cost of $32,550 Budgeted materials 0.40 lb. @ $7.10 per lb.
Materials used 4,700 lbs. Budgeted labor 36 minutes @ $11.00 per hour
Labor worked 7,460 hrs. costing $79,822 Budgeted variable overhead $35,625
Actual overhead Fixed: $84,800
Variable $36,100 Budgeted fixed overhead $85,500
How much is the standard cost of each lawn mower gear?