Lily Company uses a standard cost accounting system. In 2022, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,300 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year. (a) If the materials price variance was $5,208 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound
Lily Company uses a standard cost accounting system. In 2022, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,300 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year. (a) If the materials price variance was $5,208 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Current Attempt in Progress
Lily Company uses a standard cost accounting system. In 2022, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,300 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year.
(a)
If the materials price variance was $5,208 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.)
|
Standard materials price per pound
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
What was the
|
Standard cost per unit
|
Solution
by Bartleby ExpertFollow-up Question
If the materials quantity variance was $18,612 unfavorable, what was the standard materials quantity per unit?
Solution
by Bartleby ExpertFollow-up Question
Hello, The Standard material price per pound you said is $0.90. This answer is not accepted. Can you please check for me? thanks
Transcribed Image Text:TABLE 1 Future Value of 1
(n)
Periods
0
1
2
3
4
5
67698H23
10
11
12
13
14
15
16
17
18
19
20
TABLE 2 Future Value of an Annuity of 1
(n)
Payments 4%
1
2
3
4
5
6
7
5%
6%
7%
1.00000 1.00000
8%
9% 10%
11%
12%
15%
1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000
3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250
4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338
5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238
6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374
8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680
9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682
10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584
12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372
13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928
15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167
16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192
14 18.29191 19.59863 21.01507 22.5505 24.21402 26.01919 27.97498 30.09492 32.39260 40.50471
6.63298 6.80191
7.89829 8.14201
13
4
15 20.02359 21.57856 23 Page 25.1290 27.15211 29.392 377248 34.40536 37.27972 47.58041
21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747
23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509
8
9
10
11
12
5%
6%
7%
8%
9%
10%
11%
12%
1.00000
4%
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
1.04000 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000 1.12000
1.08160 1.10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440
1.12486 1.15763 1.19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493
1.16986 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.51807 1.57352
1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 1.68506 1.76234
1.26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382
1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068
1.36857 1.47746 1.59385 1.71819 1.85093 1.99256 2.14359 2.30454 2.47596
1.42331 1.55133 1.68948 1.83846 1.99900 2.17189 2.35795 2.55803 2.77308
1.48024 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 3.10585
1.53945 1.71034 1.89830 2.10485 2.33164 2.58043 2.85312 3.15176 3.47855
1.60103 1.79586 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845 3.89598
1.66507 1.88565 2.13293 2.40985 2.71962 3.06581 3.45227 3.88328 4.36349
1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.31044 4.88711
1.80094 2.07893 2.39656 2.75903 3.17217 3.64248 4.17725 4.78459 5.47357
2.54035 2.95216 3.42594 3.97031 4.59497 5.31089 6.13039
1.94790 2.29202 2.69277 3.15882 3.70002 4.32763 5.05447 5.89509 6.86604
2.02582 2.40662 2.85434 3.37993 3.99602 4.71712 5.55992 6.54355 7.68997 12.37545
2.10685 2.52695 3.02560 3.61653 4.31570 5.14166 6.11591 7.26334 8.61276 14.23177
2.19112 2.65330 3.20714 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654
1.87298 2.18287
9.35762
10.76126
! +5
16
17
15%
1.00000
1.15000
1.32250
1.52088
1.74901
2.01136
2.31306
2.66002
3.05902
3.51788
4.04556
4.65239
5.35025
6.15279
7.07571
8.13706
Transcribed Image Text:17
18
19
20
TABLE 3 Present Value of 1
(n)
Periods 4%
1234 in
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1
2
3
4
5
6
7
8
9
21.82453
149 25.67255 21.8881 30.32428 33.00340 35.9497. 39.18993 42.13328
23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509
25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.74972 75.83636
27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181
29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358
10
11
12
.96154
.92456
5%
6%
.95238 .94340
.89000
.90703
.88900 .86384 .83962
.85480 .82270
.82193 .78353
.79031 .74622 .70496
.71068 .66506 0.62275
.67684 .62741 0.58201
.75992
.73069
.70259
.64461
.59190
0.54393
.67556
.61391
55839
0.50835
.64958
.62460
.60057
.57748 .50507
55526 .48102
7%
0.93458
0.87344
0.81630
0.76290
.79209
.74726 0.71299
.58468
52679
0.47509
.55684 49697 0.44401
.53032 46884
0.41496
49363
47464
.45639 .37689
TABLE 4 Present Value of an Annuity of 1
(n)
Payments
44230
41727
.53391 .45811 .39365 0.33873
.51337
.41552
.43630 .37136 0.31657
.35034 0.29586
.39573 .33051 0.27615
.31180 0.25842
(no subject)
0.38782
0.36245
0.66634 .63017
.58349 .54703
54027 .50187
50025
46043
.46319
.42241
3
8%
9%
10%
11%
.92593 .91743 .90909
.90090
.84168
.82645
.81162
.75132 .73119
.68301
.62092
.85734
.79383
.73503
.68058
.77218
.70843
.64993
.59627 56447
42888
38554
.38753 .35049
.39711 .35554 .31863
.36770 .32618 28966
.34046
29925
31524
27454
29189 25187
27027
23107
25025
21199
19449
23171
21455 .17843
12%
15%
.89286 .86957
.79719
.71178
.65873 .63552
.59345
.56743
.53464
.50663
.43233
.48166 45235
.37594
51316
46651 43393 40388
.32690
42410 .39092 .36061 .28426
.24719
35218 .32197
26333
23939
31728 .28748
28584 .25668
25751 .22917
23199 .20462
20900
.18270
21763 .18829
.16312
.19785 .16963 .14564
.17986 .15282
.16351 .13768
.14864 .12403
.75614
.65752
.57175
49718
.13004
.11611
10367
21494
.18691
.16253
.14133
.12289
.10687
.09293
.08081
07027
.06110
5%
6%
7%
8%
9%
10%
11%
15%
12%
.86957
4%
.96154 .95238 94340 0.93458 .92593 91743 .90909 .90090 89286
1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571
2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323
3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498
4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216
5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448
6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042
6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732
7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158
8.11090 7.72173
Page
5.88923 5.65022 5.01877
Ⓒ766 +14457
8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652
9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236
7.36009 7.073584 6.71008
5.93770 5.23371
6.19437 5.42062
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education