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

Materials quantity variance = (AQ - SQ)× SP
$8,000 U = [21,000 pounds - (10,000 units × Standard quantity of the input per unit of output)] × $8 per pound
$8,000 = [21,000 pounds - (10,000 units × Standard quantity of the input per unit of output)] × $8 per pound
$8,000 = $168,000 - [(10,000 units × Standard quantity of the input per unit of output)× $8 per pound]
(10,000 units × Standard quantity of the input per unit of output)× $8 per pound = $168,000 - $8,000
(10,000 units × Standard quantity of the input per unit of output)× $8 per pound = $160,000
(10,000 units × Standard quantity of the input per unit of output)= $160,000 ÷ $8 per pound
10,000 units × Standard quantity of the input per unit of output = 20,000 pounds
Standard quantity of the input per unit of output = 20,000 pounds ÷ 10,000 units
Standard quantity of the input per unit of output = 2 pounds per unit
Standard cost of direct material for one unit of output = 2 pounds per unit × $8 per pound = $16 per unit