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The CanaanEli Corporation manufactures baseball hats. The major material in each hat is nylon fabric, and the standard price for the fabric is $4.75 per

The CanaanEli Corporation manufactures baseball hats. The major material in each hat is nylon fabric, and the standard price for the fabric is $4.75 per yard. Each hat contains 0.4 yards of fabric. CanaanEli allows 0.05 yards for scrap and 0.03 yards for waste. What is the standard direct materials cost per hat?

$1.90

$2.28

$1.87

$2.07

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