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Your Company makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system.

Your Company 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..................

$28,000

Favorable

Material quantity variance.............

$20,000

Unfavorable

Actual direct material used............

21,000

pounds

Direct materials standard price......

$8

per pound

What is the per UNIT standard cost of direct material for one unit?

a. $19.60

b. $14.80

c. $ 1.86

d. $14.00

e. $18.80

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