Answer:
c. 6.00
Explanation:
We know,
Quantity variance = (Actual Quantity used - Standard Quantity used) x Standard Rate
Given,
<em>Quantity variance</em> = $1,800 unfavorable (Here, Unfavorable means actual quantity is higher than standard quantity).
<em>Actual Quantity</em> used = 8,400 pounds of materials
As actual quantity exceeds the standard quantity by 300 pounds, <em>standard quantity</em> = (8,400 - 300) = 8,100 pounds of material.
Therefore,
Quantity variance = (Actual Quantity used - Standard Quantity used) x Standard Rate
or, $1,800 unfavorable = (8,400 - 8,100) pounds x Standard Rate
or, $1,800 unfavorable = 300 pounds x Standard Rate
or, Standard rate = $1,800/300 pounds
Hence, Standard Rate = $6.00.
