Jackson Industries has collected the following data for one of its products. Dir
ID: 2476790 • Letter: J
Question
Jackson Industries has collected the following data for one of its products.
Direct materials standard (6 pounds per unit @ $0.55/lb.)
$3.30 per finished good
Direct materials flexible budget variance-unfavorable
$12,000
Actual direct materials used
35,000 pounds
Actual finished goods produced
26,000 units
What is the total actual cost of the direct materials used?
Direct materials standard (6 pounds per unit @ $0.55/lb.)
$3.30 per finished good
Direct materials flexible budget variance-unfavorable
$12,000
Actual direct materials used
35,000 pounds
Actual finished goods produced
26,000 units
Explanation / Answer
Find the actual cost of the Direct Materials Used (AQU) per pound as follows:
26,000 units × $3.30 per unit = $85,800
Material budget variance = $12,000
Total cost = $97,800
The actual cost of the Direct Materials Used (AQU) per pound = $97,800 / 35,000 pounds = 2.79
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.