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Debbie Co
Debbie Co. manufactures a product requiring two pounds of direct material. During 2015, Debbie purchases 24,000 pounds of material for $74,400 when the standard price per pound is $3.00. During 2015, Debbie uses 22,000 pounds to make 12,000 products. The standard direct material cost per unit of finished product is:
$6.00.
$6.20.
$6.40.
$6.76.
Expert Solution
Computation of Standard direct material cost per unit of finished product:
Standard direct material cost per unit of finished product = Cost per Pound*Standard Quantity per Unit
= $3*2
= $6.00
So, Standard direct material cost per unit of finished product is $6.00
The correct option is 1st "$6.00".
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