Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:

Actual Data				Budgeted and Standard Data
Produced	12,400 units		Budgeted units		12,500 units
Materials purchased	4,650 lbs. for a total cost of $32,550		Budgeted materials		0.40 lb. @ $7.10 per lb.
Materials used	4,700 lbs.		Budgeted labor		72 minutes @ $12.00 per hour
Labor worked	7,460 hrs. costing $79,822		Budgeted variable overhead		$35,625
Actual overhead	Fixed: $84,800 Variable $36,100		Budgeted fixed overhead		$85,500

How much is the standard cost of each lawn mower gear?

	a)	$25.73
	b)	$25.95
	c)	$25.59
	d)	$28.59
	e)	$26.93