q1 ch 10

Problem 10-14 [Algal Basic Variance Analysis [LO10-1, LO102, Low-3] Becton Labs. Inc.. produces various chemical compounds for industrial use. One compound, called Fludex. is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 2.10 ounces $15.00 per ounce $31.50 Direct labor 0.90 hours $15.00 per hour 12.00 Variable manufacturing overhead CI . ED hours $ 3 . 50 per hour 2 . 90 Total standard cost per unit $46.30