Siggy Inc Budgeted 12,000 and Produced 11,000 Tape Dispensers During June

Multiple Choice

Siggy Inc. budgeted 12,000 and produced 11,000 tape dispensers during June. Resin used to make the dispensers is purchased by the pound. Manufacturing overhead is applied based on units produced. Manufacturing standards and actual costs follow:
$\begin{array}{|l|c|c|}\hline &\text { Standards }&\text { Actual }\\ \hline \text { Materials } & 2 \text { pounds @ } \$ 5.00 \text { a pound } & 20,900 \text { pounds } @ \$ 4.90 \text { per pound } \\\hline \text { Labor } & 0.25 \text { hours } @ \$ 15.00 \text { per hour } & 2,700 \text { hours } @ \$ 15.30 \text { per hour } \\\hline \text { Variable overhead } & \$ 39,000 & \$ 36,500 \\\hline \text { Fixed overhead } & \$ 1.50 \text { per dispenser } & \$ 17,250\\\hline\end{array}$
How much is the standard cost of a tape dispenser?

A) $18.50
B) $13.75
C) $24.75
D) $18.80