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Gnoma [55]
3 years ago
15

The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favo

rable. What does the company use as a standard price per yard of material for its safety suits?
Business
1 answer:
Black_prince [1.1K]3 years ago
5 0

Answer:

the  standard price per yard is $6.25

Explanation:

The computation of the standard price per yard is shown below;

Material quantity variance = Standard Price  × (Actual quantity - Standard quantity)

-$5,000 = Standard price  × (10,000 - 10,800)    

Thereore Standard price = -$5,000 ÷ (-800)  

= $6.25    

Hence, the  standard price per yard is $6.25

We simply applied the above formula so that the standard price per yield could come

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