Question
Please help with the calculations. I do not understand what to do for unfavorable variance verse favorable variance. Kansas Company uses a standard cost accounting
Please help with the calculations. I do not understand what to do for unfavorable variance verse favorable variance.
Kansas Company uses a standard cost accounting system. In 2017, the company produced27,500units. 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 was50,400direct labor hours. During the year,130,700pounds of raw materials were purchased at $0.91per pound. All materials purchased were used during the year.
*(a)
If the materials price variance was $1,307favorable, what was the standard materials price per pound?(Round answer to 2 decimal places, e.g. 2.75.)
Standard materials price per pound$.92
*(b)
If the materials quantity variance was $11,454 unfavorable, what was the standard materials quantity per unit?(Round answer to 1 decimal place, e.g. 1.5.)
Standard materials quantity per unit $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started