Rowing Company Has Developed the Following Standards for One of Its

Multiple Choice

Rowing Company has developed the following standards for one of its products: Direct materials: 7 pounds × $8 per pound
Direct labor: 2 hours × $12.50 per hour
Variable manufacturing overhead: 2.5 hours × $7 per hour
The following activity occurred during the month of March:
Materials purchased: 5,000 pounds costing $42,500
Materials used: 3,600 pounds
Units produced: 500 units
Direct labor: 1,150 hours at $11.80/hour
Actual variable manufacturing overhead: $7,500
The company records materials price variances at the time of purchase.
The variable standard cost per unit is

A) $81.00
B) $91.00
C) $98.50
D) $42.50