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J.C Coats Inc. carefully develops standards for its coat making operation. Its specifications call for 2 square yards of wool per coat. The budgeted price of wool is​ $44 per square yard. The actual price for the wool was​ $36 and the usage was only 1.70 yards of wool per coat. What would be the standard cost per output for the​ wool?

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facundobuzzetti

Answer:

Standard cost= $88 per unit

Explanation:

Giving the following information:

Its specifications call for 2 square yards of wool per coat. The budgeted price of wool is​ $44 per square yard.

To calculate the standard cost per unit, we need to multiply the total direct material quantity per unit for its unitary cost.

Standard cost= 2sq*$44= $88 per unit

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