Niven Company Has Developed the Following Standards for One of Its

Multiple Choice

Niven Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials: } & 8 \mathrm{~kg} \times \$ 8.5 \text { per kilogram } \\\text { Direct labour: } & 3 \text { hours } \times \$ 13 \text { per hour }\end{array}$ The following activity occurred during the month of April: $$\begin{array} { l l } \text { Materials purchased: } & 5,000 \mathrm {~kg} \text { costing } \$ 42,500 \\\text { Materials used: } & 3,600 \mathrm {~kg} \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 1,150 \text { hours at } \$ 11.80 \text { per hour }\end{array}$$ The company records materials price variances at the time of purchase.What is the variable standard cost per unit for materials and labour?

A) $38
B) $74
C) $84
D) $98