Standard Gears Produces Lawn Mower Gears How Much Is the Standard Cost of Each Lawn Mower

Multiple Choice

Standard Gears produces lawn mower gears.It uses units as the cost driver for overhead.The following information was provided concerning its standard cost system: $\begin{array}{|l|l|l|l|}\hline{\text { Actual Data }} &&{\text { Budgeted and Stand ard Data }} \\\hline \text { Produced } & 12,400 \text { units } & \text { Budgeted units } & 12,500 \text { units } \\\hline \text { Materials purchased } & \begin{array}{c}4,650 \mathrm{lbs} . \text { for a total cost of } \\\$ 32,550\end{array} & \text { Budgeted materials } & 0.40 \mathrm{lb} . @ \$ 7.10 \text { per } \mathrm{lb} . \\\hline \text { Materials used } & 4,700 \mathrm{lbs} . &\text { Budgeted labor }& \begin{array}{c}36 \text { minutes } @ \$ 11.00 \text { per } \\\text { hour }\end{array} \\\hline \text { Labor worked } & 7,460 \text { hrs. costing } \$ 79,822 & \begin{array}{l}\text { Budgeted variable } \\\text { overhead }\end{array} & \$ 35,625 \\\hline \text { Actual overhead } & \begin{array}{l}\text { Fixed: } \$ 84,800 \\\text { Variable } \$ 36,100\end{array} & \begin{array}{l}\text { Budgeted fixed } \\\text { overhead }\end{array} & \$ 85,500 \\\hline\end{array}$ How much is the standard cost of each lawn mower gear?

A) $25.59
B) $19.13
C) $9.44
D) $19.28