Question

Suver Corporation has a standard costing system. The following data are available for June:Actual quantity of direct materials purchased 24,000 poundsStandard price of direct materials $6.00 per poundMaterial price variance $6,000 UnfavorableMaterial quantity variance $2,400 FavorableThe actual price per pound of direct materials purchased in June was:a. $6.10 per poundb. $5.90 per poundc. $6.25 per poundd. $6.30 per pound

Answer 1

c. $6.25 per pound

Step-by-step explanation:

The computation of the material price variance is presented below:

Material price variance = Actual Quantity × (Standard Price - Actual Price)

$6,000 = 24,000 × ($6 per pound - Actual price)

$6,000 ÷ $24,000 = $6 per pound - Actual price

$0.25 = $6 per pound - Actual price

So, the actual price would be

= $6 + $0.25

= $6.25 per pound