Up Norths managers expected to produce 20,000 units of product in March. The standard cost for the

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Up North’s managers expected to produce 20,000 units of product in March. The standard cost for the materials used for 20,000 units is $173,600 and the standard cost per unit is $2.80 per litre. Actual production in March was 19,100 units. The company purchased and used 57,300 litres of materials costing $163,305. What is the standard quantity of litres per unit?

a. 3.1 litres

b. $2.80 per litre

c. 8.68 litres

d. 3 litres

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Cost Management Measuring, Monitoring And Motivating Performance

ISBN: 1601

3rd Canadian Edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook

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