Standard Direct Materials Cost per Unit from Variance Data The following data re
ID: 2530292 • Letter: S
Question
Standard Direct Materials Cost per Unit from Variance Data
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.
per unit
Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,800 pounds) has the following standards:
The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-111 were as follows:
a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Quantity of direct materials used 6,300 lbs. Actual unit price of direct materials $3.9 per lb. Units of finished product manufactured 1,515 units Standard direct materials per unit of finished product 4 lbs. Direct materials quantity variance—unfavorable $960 Direct materials price variance—favorable $630Explanation / Answer
GOOD CLEAN FUN INC.
Working:
CONDIMENTS COMPANY
a.
b.
Product finished 1515 units Standard finished product for direct material used (6,300 / 4) 1575 units Deficiency of finished product for materials used (1,575 - 1,515) 60 units Standard cost for direct materials ($ 4 lb x $4.00) $16.00 per unitRelated Questions
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