Question

Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 24,000 pounds Standard price of direct materials $ 6.00 per pound Material price variance $ 6,000 Unfavorable Material quantity variance $ 2,400 Favorable The actual price per pound of direct materials purchased in June was:

Answer 1

Answer:

$6.25

Explanation:

Given the data below from the above information,

The actual quantity of direct materials purchased 24,000 pounds

Standard price of direct materials price $6 per pound

Material price variance unfavorable -$6,000

Material quantity variance $2,400

Therefore;

Direct material price Variance = (Standard price - Actual price) × Actual quantity

- $6,000 = ($6 - Actual price ) × 24,000

-$6,000 = $144,000 - 24,000 AP

24,000 AP = $144,000 + $6,000

24,000 AP = $150,000

AP = $6.25