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Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased. The materials price variance was $10,000 F. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the actual price per pound of materials

Sagot :

Answer:

Actual price= $10.5 per pound

Explanation:

To calculate the actual price per pound of material, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

10,000= (11 - actual price)*20,000

10,000= 220,000 - 20,000actual price

20,000actual price= 210,000

actual price= $10.5