On October 7, Schmidt Machinery Company purchased 722 pounds of PVC at $43 per pound. On October 9, Schmidt's production department used 722 pounds of PVC for the 782 units of XV-1 it manufactured.

Standard Cost Sheet, Product XV-1 SCHMIDT MACHINERY COMPANY Standard Cost Sheet Product: XV-1 Descriptions Quantity Cost Rate Subtotal Total Direct materials: Aluminum 4 pounds $ 25 per pound $ 100 PVC 1 pound 40 per pound 40 Direct labor 5 hours 40 per hour 200 Variable factory overhead 5 hours 12 per hour 60 Total variable manufacturing cost $ 400 Fixed factory overhead 5 hours 24 per hour 120 120 Standard manufacturing cost per unit $ 520 Standard variable selling and administrative cost per unit $ 50