Question

The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate

Answer 1

It costs $12 less than expected.

Explanation:

Given that,

The standard quantity of materials required for a product are 40 pounds per unit.

Its also known that it costs $2.00 per pound which is the standard price.

So the total amount for the quantity required is $2*40=$80

But here the actual quantity used is 44 pounds per unit.

Also the actualo price is know to be $1.5 ,

hence the actual price would be =$1.5*44=$66

We observe that the actual prize for the quantity required is lesser than the standard price known by $12 .