Utensil City Produces a Range of Frying Pans

Multiple Choice

Utensil City produces a range of frying pans. During May, the company's records revealed the following information about production of the frying pans.
Standards:
Direct materials 3 units @ $2.50 per unit
Direct labour 1 hour @ $14.00 per hour
Manufacturing overhead
Variable $5.00 per direct labour hour
Fixed $6.00 per direct labour hour
Compute the standard unit cost for a frying pan.

A) $32.50
B) $26.50
C) $27.50
D) $21.50