Question: 57. Dahl Co. uses a standard costing system in connection with the manufacture of a one size fits all article of clothing. Each unit of

57. Dahl Co. uses a standard costing system in connection with the manufacture of a “one size fits all” article of clothing.

Each unit of finished product contains two yards of direct material. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The cost of the direct material is $3 per yard. The standard direct material cost per unit of finished product is

a. $4.80

b. $6.00

c. $7.20

d. $7.50

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