2. Simon Motion is the management accountant at a factory that produces fidgets. He is preparing a standard direct cost for making a unit of fidget, and his estimates of direct materials costs are as follows.

Direct materials:

Quantity Price per

kg kg prob. R prob.

8 0,5 10 0,5

9 0,4 12 0,5

14 0,1

Required:

a. Calculate a standard direct material cost per unit based on EVs.

b. Measure the possible variation in materials cost per unit, as a standard deviation of the probability distribution.