Marcus is on a team to plan volunteer opportunities for employees in the company. His role is to handle public communications ab
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Answer:
(d) $2.18
Cost formula per machine hour for indirect material cost = $2.18
Explanation:
Actual Indirect material cost = $30,444
Actual hours = 17,700
Standard hours = 18,200
Spending variance for indirect material = $8,142
That is favorable,
Formula of spending variance = (Standard Price - Actual Price) Actual Quantity
= Standard Price Actual Quantity - Actual Price
Actual Quantity = 1,842
Standard Price Actual Quantity = $8,142 + $30,444 = $38,586
Standard Price = $38,586/17,700 = $2.18
Final Answer
Cost formula per machine hour for indirect material cost = $2.18