Question
A company developed the following per-unit standards for its product: 2.4 pounds of direct materials at $2 per pound. Last month, 700 pounds of direct
A company developed the following per-unit standards for its product: 2.4 pounds of direct materials at $2 per pound. Last month, 700 pounds of direct materials were purchased and used for $1,470. The company produced 290 units of product. How much is the direct materials price variance for last month?
a. $8 unfavorable
b. $78 unfavorable
c. $70 unfavorable
d. $61.60 unfavorable
39. The per-unit standards for direct materials are 1.5 gallons at $2.50 per gallon. Last month, 4,180 gallons of direct materials that actually cost $10,659 were used to produce 3,000 units of product. How much is the direct materials standard?
a. $4,500
b. $11,250
c. $3.75
d. Not enough information
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started