Question
Brown Inc. makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system.
Brown Inc. makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for October show the following data:
|
| |||
Number of units produced |
| 10,000 |
| |
Material price variance | $ | 8,400 | Favorable | |
Material quantity variance | $ | 8,000 | Unfavorable | |
Actual direct material purchased and used |
| 21,000 | pounds | |
Direct materials standard price | $ | 8 | per pound | |
There were no beginning inventories of direct materials.
The actual cost of direct material was:
Group of answer choices
$8.00 per pound
$7.60 per pound
$7.42 per pound
$8.12 per pound
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