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If the materials quantity variance was $13,110 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal places, e.g. 1.5.)
Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $11.00. Normal capacity was 50,170 direct labor hours. During the year, 131,400 pounds of raw materials were purchased at $0.93 per pound. All materials purchased were used during the year.Warning
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Explanation / Answer
Material Quantity variance = (Standard Quantity - Actual quantity) * Standard price per unit
Std Price = 0.95 ; Actual quantity = 131400 pounds ; Std Quantity = ?
- 13110 = ( Std Quantity - 131400) * 0.95
( Std Quantity - 131400) = -13110 / 0.95
( Std Quantity - 131400) = -13800
Std Quantity = 131400 - 13800 = 117600
Std quanity per unit = 117600 / 28000 = 4.200 Pounds per unit
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