Question - Niven Company has developed the following standards for one of its products:
|
Direct materials:
|
8 kg × $8.5 per kilogram
|
|
Direct labour:
|
3 hours × $13 per hour
|
The following activity occurred during the month of April:
|
Materials purchased:
|
5,000 kg costing $42,500
|
|
Materials used:
|
3,600 kg
|
|
Units produced:
|
500 units
|
|
Direct labour:
|
1,150 hours at $11.80 per hour
|
The company records materials price variances at the time of purchase. What is the variable standard cost per unit for materials and labour?
$38
$74
$98
$107