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A product consists of 2 ounces of oil ($2 per ounce) and 1 ounce of powder ($8 per ounce). Each man hour ($24 per hour) produces 12 units of product. Variable overhead is at $4 per labor hour. Fixed overhead is applied at $8 per labor hour.
A. The standard cost of a unit of product is $13.
B. The standard cost of a unit of product is $15.
C. The standard cost of a unit of product is $24.
D. The standard cost of a unit of product is $36.
E. None of these.
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