Question

A company uses 8400 pounds of materials and exceeds the standard by 300 pounds. the quantity variance is $1800 unfavorable. what is the standard price?

Answer 1

The company has an unfavorable price of $ 1,800 because it exceeded the standard with 300 pounds. It means that for every pounds the company pays 1800/300 = $ 6.Therefore the price of the standard would be $ 6 / pounds giving a total of 8400 * 6 = $ 50,400