Diaz company has developed the following standards for one of its products: direct materials 3.50 pounds × $4 per pounddirect labor 1 hour × $12 per hourvariable manufacturing overhead 1 hour × $6 per hourthe following activity occurred during the month of april: materials purchased 2,000 pounds costing $22,500materials used 1,600 poundsunits produced 250 unitsdirect labor 550 hours at $12.50 per houractual variable manufacturing overhead: $2,500the company records materials price variances at the time of purchase. the total variable standard cost is:

$8000

Explanation:

Total variable cost per unit (standard):

= Direct materials + Direct labor + Variable manufacturing overhead

= [3.5 pounds × $4 per pound] + [1 hour × $12 per hour] + [1 hour × $6 per hour]

= $14 + $12 + $6

= $32 per unit

Total variable standard cost:

= Per unit cost × Units produced

= $32 × 250

= $8000

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy