Question

Use the information provided to answer the questions. Actual price paid per pound of material $14.50 Total standard pounds for units produced this period 12,400 Pounds of material used 13,350 Direct materials price variance favorable $3,337.50 All material purchased was used in production. Enter all amounts as positive numbers. A. What is the standard price for materials

Answer 1

$14.75= standard price

Step-by-step explanation:

Giving the following information:

Actual price paid per pound of material $14.50

Total standard pounds for units produced this period 12,400

Pounds of material used 13,350

Direct materials price variance favorable $3,337.50

To calculate the standard cost for materials, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

3,337.5 = (standard price - 14.5)*13,350

3,337.5 = 13,350standard price - 193,575

196,912.5 = 13,350standard price

$14.75= standard price