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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following information appears in the
| 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?
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