Shoemaker Perkins Company uses a standard cost system and had 390 pounds of raw

Question

Shoemaker Perkins Company uses a standard cost system and had 390 pounds of raw material X15 on hand on r 1. The standard cost is $9.78 per pound. The standard calls for 2.00 pounds of material X15 for each unit of the product manufactured. The company manufactured 580 units of the product in September, and had 490 pounds of Material X-15 in stock on September 30. The actual price for Material X-15 purchased during the month was $1.00 per pound below the standard cost. The material usage variance in September was $2,900 unfavorable. What was the actual nrice for materials in Sentember? $9.93 $9.78 $10.78 $8.78 $9.82

Explanation / Answer

The standard cost is standard set by the organisation . It is used to calculate the variance or difference between

the actual cost of producing the units and the budgeted cost . It is given that the actual price is $ 1 below the standard cost . There for the actual price = 9.78-1 = $ 8.78 per pound

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