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A company produces a product known as Hydro. The company uses a standard costing system and provides you with the following information:
Direct materials required to produce 1 unit of Hydro: 10 kgsStandard cost of direct materials: $6 per kgBudgeted cost of direct materials: $5.75 per kgNormal wastage while producing one unit of Hydro: 0.5 kgs
Question 1: Based on the above information, what is the standard direct materials cost per unit of product Hydro?
Select one:
Option 1: $62.5
Option 2: $60
Option 3: $65
Option 4: $57.5
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