mathxl.com Test- Salvator.. a Quiz/Test MyFIU Your Sets School of Inbox (285) St

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mathxl.com Test- Salvator.. a Quiz/Test MyFIU Your Sets School of Inbox (285) Standarod Chegg Study Oliver E ACG 3301 U07 Spring 2018 Salvatore Migneco4/14/18 12:33 PM Quiz: Quiz 8 - Chapter 11 Time Remaining: 00:29:27 Submit Qulz This Question: 1 pt 1 of 10 (0 complete) ? This Quiz: 10 pts possible Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8 pounds per unit $0.58/lb.) Direct materials flexible budget variance-unfavorable Actual Direct Materials Used (AQU) Actual finished goods produced $4.64 per finished good $14,000 33,000 pounds 28,000 units What is the actual cost of the Direct Materials Used (AQU) per pound? A. $3.94 O B. $4.36 C. $0.58 O D. $5.14 Click to select your answer

Explanation / Answer

Let the actual cost of direct materials per unit be Y.

Now, Flexible Budget Variance = Standard Cost - Actual Cost

= (Standard Quantity for Actual Output x Standard Cost per unit) - (Actual Quantity x Actual Cost per unit)

As given in the question ,direct materials flexible budget variance is 14,000 unfavorable. Therefore,

-14,000 = (28,000 x 8 x 0.48) - (33,000 x Y)

-14,000 = 1,29,920 - 33,000Y

or Y = (1,29,920 + 14,000) / 33,000

Y = 4.36

Therefore, correct answer is $4.36 i.e. Option B.

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