Final answer:
The standard price per unit of material for Apell Industries is calculated to be $2.80, based on the given direct materials quantity variance and the standard and actual quantity of materials used.
Step-by-step explanation:
The student has asked to calculate the standard price per unit of material for Apell Industries, which employs a standard costing system for manufacturing park benches. We know the company purchased 70,000 feet of raw material for $350,000 and it takes 5 feet of material to produce one park bench. With the production of 10,000 park benches, the standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $56,000.
To calculate the standard price per unit of material, we first need to find the standard quantity of material used for the actual production. We then compare it to the actual quantity used, as shown by the variance. Since variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price, we rearrange the formula to solve for the Standard Price. Thus, Standard Price = Variance / (Actual Quantity - Standard Quantity). Using this formula: Standard Price = $56,000 / (70,000 feet - (10,000 park benches x 5 feet per bench)) = $56,000 / (70,000 - 50,000) = $56,000 / 20,000 = $2.80. Therefore, the standard price per unit of material is $2.80.