A company uses 40,000 pounds of materials for which it paid $2 a pound. The materials price variance was $30,000 unfavorable. What is the standard price per pound? a. $1.25. b. $0.75. c. $2.00. d. $2.75.
A company uses 40,000 pounds of materials for which it paid $2 a pound. The materials price variance was $30,000 unfavorable. What is the standard price per pound? a. $1.25. b. $0.75. c. $2.00. d. $2.75.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company uses 40,000 pounds of materials for which it paid $2 a
pound. The materials price variance was $30,000 unfavorable. What is
the standard price per pound?
a. $1.25.
b. $0.75.
c. $2.00.
d. $2.75.
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