Using the following information compute the standard unit cost of a 20 pound bag of sand:

Direct Materials Quantity Standard	20 pound
Direct materials price standard	$0.02 per pound
Direct labor time stadard	0.1 hour
direct labor rate standard	$13.00 per hour
Variable overhead rate standard	$2.50 per machine hour
Fixed overhead rate standard	$1.50 per machine hour
Machine hour standard	0.25 hours per unit

a. $2.36

b. $2.70

c. $2.30

d. $2.95