Determining unit of finished product

Reference no: EM13146559

Dahl Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 yards of cloth. However, there is unavoidable waste of 20%, calculated on input quantities, when the cloth is cut for assembly. The cost of the cloth is $3 per yard. The standard direct material cost for cloth per unit of finished product is:

a. $4.80.

b. $6.00.

c. $7.00.

d. $7.50.

Reference no: EM13146559

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