Question

Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 50,000 pounds Standard price of direct materials $ 4.00 per pound Material price variance $ 9,000 Unfavorable Material quantity variance $ 9,000 Favorable The actual price per pound of direct materials purchased in June was __________.

Answer 1

Answer: $4.18

Step-by-step explanation:

Material price variance = (Standard price - Actual price) * Actual quantity

-9,000 = (4 - P) * 50,000

-9,000 = 200,000 - 50,000P

50,000P = 200,000 + 9,000

P = 209,000/50,000

P = $4.18