Problem 23 4A (Part Level Submission) Kansas Company uses a standard cost accoun

Question

Problem 23 4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,500 units. Each unit took several pounds of direct materials and 1.6 standard hours of diredt labor at a standard hourly rate of $11.00, Normal capacity was 49,500 direct labor hours. During the year, 130,00 paunds af raw materias were purchased at $D.90 per paund. Al materials purchased were used during the year. (a) Ir the materials price variance was $1,300 Tevorable, what was the standard materials price per pound? (Round ansiver to 2 decimal places,e.g. 2.75. Standard materials price per pound

Explanation / Answer

Answer:

Materials Price Variance = 1,300 (Favourable)
Units of Raw Material Purchased = 130,000 Pounds
Material Price Variance per Pound = 1,300 / 130,000
Material Price Variance per Pound = $0.01 (Favourable)

Raw Material Price per pound = $0.90
Therefore, Standard Material Price per pound =$0.90 + $0.01
Standard Material Price per pound = $0.91

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.