Given the following, the standard cost of this item is $per unit. Direct materials per unit: 2 pounds
Direct material cost: $2.50 per pound
Direct labor per unit: .75 hours
Direct labor rate: $16.00 per hour
Variable overhead rate: $8.00 per hour

$23 per unit

Explanation:

Standard cost = Direct materials + Direct labor + Variable overhead

Standard cost = (2 pounds*$2.50 per pound) + (0.75 hours*$16.00 per hour) + (0.75 hours*$8.00 per hour)

Standard cost = $5 + $12 + $6

Standard cost = $23

So, the standard cost of this item is $23 per unit.

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