Question 50).

The Bowden Corporation makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data:

Number of units produced		10,000
Material price variance	$	8,400	(Favorable)
Material quantity variance	$	8,000	(Unfavorable)
Actual direct material purchased and used		21,000	pounds
Direct materials standard price	$	8	per pound

There were no beginning inventories of direct materials.

The standard cost of direct material for one unit of output is:

		$2 per unit
		$16 per unit
		$8 per unit
		$10 per unit