Cuevas Company Produces Magic Swords How Much Is the Standard Cost Per Unit?
A)$21

Multiple Choice

Cuevas Company produces magic swords.It uses units as the cost driver for overhead.The following information was provided concerning its standard cost system for 2017: $\begin{array}{|l|l|}\hline{\text { Standard/Budgeted Data }} \\\hline \text { Material } & \begin{array}{l}1 / 2 \mathrm{~b} . @ \$ 15.00 \text { per } \\\mathrm{b} .\end{array} \\\hline \text { Labor } & \begin{array}{l}1.2 \mathrm{hrs} . @ \$ 12 \mathrm{per} \\\mathrm{hr} .\end{array} \\\hline \text { Fixed overhead } & \$ 62,000 \\\hline \begin{array}{l}\text { Variable } \\\text { overhead }\end{array} & \$ 11 \text { per unit } \\\hline \text { Production } & 2,000 \text { units } \\\hline\end{array}$ $\begin{array}{|l|l|}\hline {\text { Actual Data }} \\\hline \text { Produced } & 2,100 \text { units } \\\hline \begin{array}{l}\text { Materials } \\\text { purchased }\end{array} & 1,050 \mathrm{lbs} \text {. for } \$ 14,700 \\\hline \text { Materials used } & 1,080 \mathrm{lbs} . \\\hline \text { Laborworked } & \begin{array}{l}2,500 \mathrm{hrs} . \text { costing } \\\$ 29,375\end{array} \\\\\hline \text { Overhead } & \$ 82,000 \\\hline\end{array}$ How much is the standard cost per unit?

A) $21.90
B) $63.90
C) $69.00
D) $62.42