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kondaur [170]
3 years ago
15

assume the following the standard price per pound is 2.00 the standard quantity of pounds allowed per unit of finished goods is

4 pounds the actual quantity of materials purchased and used in production is 50000 pounds the company produced 13000 units of finished goods during the period the actual price per pound of direct materials is closest to
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer: $2.28

Explanation:

Based on the information given, the actual price per pound of direct materials will be calculated as:

Material Price Variance = (14000)

Since material price valriance is the actual price deducted from the standard price for actual quantity that was used during production process. This will be:

(14000) = [(2 × 50000)] - [Actual Price × 50000]

(14000) = (100000) - (actual price × 50000)

(Actual Price × 50000) = 100000 + 14000

Actual Price × 50000) = 114000

Actual Price = 114000 / 50000

Actual price = 2.28

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