1. Starfish Enterprises produces mens sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Material costs for a selected job is $900 for a batch of 30 suit coats (units).

The material cost per unit is ________.

$27.00

$30.00

$27.70

$26.00

2. Starfish Enterprises management has obtained data on the material costs for a selected job which used 300 feet of materials, while estimates for the job required only 260 feet of materials. The materials price per unit was the same.

Which is not a reason for the difference in material usage?

A new employee worked on the job.

The material used was of poor quality.

The cutting tools were in need of repair.

The cost of materials increased from the time of the estimate.