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Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is...

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Accounting

Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 2.20 ounces $ 23.00 per ounce $ 50.60 Direct labor 0.70 hours $ 12.00 per hour 8.40 Variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 61.10

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