York Bay Kayaks manufactures fiberglass kayaks. The standard cost of direct materials and direct manufacturing labor is $195 per kayak. This includes 25 pounds of direct materials at the budgeted price of $2.50 per pound and 12 hours of direct manufacturing labor at the budgeted rate of $15.00 per hour. Following are additional data for the month of August: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor hours Actual direct labor cost Direct materials efficiency variance There were no beginning inventories. 6,200 units 230,000 pounds $805,000 52,000 hours $780,000 $1,500 F Calculate the actual price per pound of direct materials purchased.

York Bay Kayaks manufactures fiberglass kayaks. The standard cost of direct materials and direct manufacturing labor is $195 per kayak. This includes 25 pounds of direct materials at the budgeted price of $2.50 per pound and 12 hours of direct manufacturing labor at the budgeted rate of $15.00 per hour. Following are additional data for the month of August: Units completed Direct material purchases Cost of direct material purchases Actual direct manufacturing labor hours Actual direct labor cost Direct materials efficiency variance There were no beginning inventories. 6,200 units 230,000 pounds $805,000 52,000 hours $780,000 $1,500 F Calculate the actual price per pound of direct materials purchased.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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Calculate the actual price per pound of direct materials purchased