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J.c coats inc. carefully develops standards for its coat making operation. its specifications call for 2 square yards of wool per coat. the budgeted price of wool is $44 per square yard. the actual price for the wool was $36 and the usage was only 1.70 yards of wool per coat. what would be the standard cost per output for the wool?
a.$61.20 per coat
b.$72.00 per coat
c.$88.00 per coat
d.$74.80 per coat

Respuesta :

jushmk
Standard:

Wool required = 2 yard^2 per coat
Cost = $44/ yard^2

Therefore,
Total standard cost per coat = wool per coat * cost per yard squared = 2*44 = $ 88 per coat.

The correct answer is C.
david8644

Answer:

a.$61.20 per coat

Explanation:

The standard cost of the whool per coat will depend on the actual price of for the wool, which is $36 per square yard, as you can see it was only used 1.7 yards per coat, so you just have to multiply the yards used by the actual price:

1.7*36=61.20

So the standard cost per output for the wool was 61.20 usds.

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