Wildhorse Company uses a standard cost accounting system. In 2020, the company produced 28,500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,300 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year. (a) If the materials price variance was $5,252 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ eTextbook and Media Save for Later
Wildhorse Company uses a standard cost accounting system. In 2020, the company produced 28,500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,300 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year. (a) If the materials price variance was $5,252 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ eTextbook and Media Save for Later
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Company uses a standard cost accounting system. In 2020, the company produced 28,500 units.
Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard
hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,300 pounds of
raw materials were purchased at $0.91 per pound. All materials purchased were used during the year.
(a)
If the materials price variance was $5,252 favorable, what was the standard materials price per pound?
(Round answer to 2 decimal places, e.g. 2.75.)
Standard materials price per pound $
eTextbook and Media
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