The Bowden Corporation makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data: Number of units produced 10,000
Material price variance $ 8,400 (Favorable)
Material quantity variance $ 8,000 (Unfavorable)
Actual direct material purchased and used 21,000 pounds
Direct materials standard price $ 8 per pound
There were no beginning inventories of direct materials.
The standard cost of direct material for one unit of output is:
a) $2 per unit
b) $16 per unit
c) $8 per unit
d) $10 per unit