Standard Materials Cost

The controller at your shoemaking company has determined that under normal conditions, you will spend $8.50 per unit of materials, and it will take 2.8 units of material per pair of shoes. Given this information, calculate the standard cost of materials per pair of shoes. If require, round the standard cost per pair of shoes to the nearest cent.

Manufacturing Cost Standard price per unit of material x Standard Materials per pair = Standard Cost per pair

Direct Material $ 8.5 per 2.8 units $23.80

Actual Materials Cost

During August, your shoemaking company incurred actual direct materials costs of $65,610 for 7,290 units of direct materials in the production of 2,200 pairs of shoes. Given this information, calculate the actual cost of materials per unit. If require, round the actual cost of materials per unit to the nearest cent.

Manufacturing Cost Actual Material use / Actual Material used = Cost per unit

Direct Materials $65,610 7,290 $9

Standard Materials x Standard Rate

_________ x $8.5

= $_________

Direct Material Price Variance

$65,610 - $___________

= $___________

Direct Materials Quantity Variance

$________ - $___________

= $___________

Total Direct Materials cost variance

$65,610 - $___________

= $___________