A company produces a product known as Hydro. The company uses a standard costing system and provides you with the following information:

• Direct materials required to produce 1 unit of Hydro: 10 kgs
• Standard cost of direct materials: $6 per kg
• Budgeted cost of direct materials: $5.75 per kg
• Normal wastage while producing one unit of Hydro: 0.5 kgs

Based on the above information, what is the standard direct materials cost per unit of product Hydro?

Select one:

$62.5

$60

$65

$57.5