Note that data typically changes for each new question, even when the same company or product name is used. Martinez Company produces pastries for resale at local restaurants. The master budget indicates that the company expects to use 5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of pastries).

Each unit produced will require 0.60 direct labor hours at a cost of $24.00 per hour. Variable manufacturing overhead is applied based on direct labor hours at a rate of $4.80 per hour. Expected sales last year totaled 80,000 units. Actual sales last year totaled 70,000 units. The standard cost per unit for direct labor is _____

$14.40

$10.00