Kay Inc. produces and sells cat food. Each bag contains 20 pounds of cat food. Following additional information is provided by the company:

	Direct materials quantity standard	20 pounds per unit
	Direct materials price standard	$0.02 per pound
	Direct labor time standard	0.1 hour per unit
	Direct labor rate standard	$11.50 per hour
	Variable overhead rate standard	$3.50 per machine hour
	Fixed overhead rate standard	$1.50 per machine hour
	Machine hour standard	0.25 hours per unit

Compute the standard unit cost for each bag.

• A. $2.15
• B. None of the above
• C. $2.80
• D. $2.21
• E. $2.55