The standard cost card for one unit of a finished product shows the following:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		12	feet	$	?	per foot
Direct labor		1.5	hours	$	12	per hour
Variable manufacturing overhead		1.5	hours	$	8	per hour

If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Multiple Choice

• $2

• $3

• $4

• $5