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Mrrafil [7]
3 years ago
9

The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fu

n Inc., a manufacturer of organic toys:Quantity of direct materials used 3,000 lbs.Actual unit price of direct materials $5.50 per lb.Units of finished product manufactured 1,400 unitsStandard direct materials per unit of finished product 2 lbs.Direct materials quantity variance-unfavorable $1,000Direct materials price variance-unfavorable $1,500
Determine the standard direct materials cost per unit of the finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month.
Business
1 answer:
Dima020 [189]3 years ago
5 0

Answer:

standard price= $5

Explanation:

Giving the following information:

Quantity of direct materials used 3,000 lbs. Actual unit price of direct materials $5.50 per lb. Units of finished product manufactured 1,400 units Standard direct materials per unit of finished product 2 lbs.Direct materials quantity variance-unfavorable $1,000Direct materials price variance-unfavorable $1,500.

Direct material price variance= (standard price - actual price)*actual quantity

-1,500= (SP - 5.5)*3,000

15,000=3,000SP

5= standard price

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1400*2 - 3,000)*5

Direct material quantity variance= 1,000 unfavorable

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