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22 August, 07:36

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

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Answers (1)
  1. 22 August, 07:45
    0
    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.
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