FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Standard Direct Materials Cost per Unit from Variance Data
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:
Quantity of direct materials used | 6,700 lb. |
Actual unit price of direct materials | $2.10 per lb. |
Units of finished product manufactured | 1,605 units |
Standard direct materials per unit of finished product | 4 lb. |
Direct materials quantity variance—unfavorable | $644 |
Direct materials price variance—unfavorable | $1,340 |
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your
Product finished | 1605 | |
Standard finished product for direct materials used | units? | |
Deficiency of finished product for materials used | units? | |
Standard cost for direct materials | $ | per unit |
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- Nonearrow_forwardDirect Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows:arrow_forwardStandard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 5,800 lbs. Actual unit price of direct materials $3.90 per lb. Units of finished product manufactured 1,390 units Standard direct materials per unit of finished product 4 lbs. Direct materials quantity variance—unfavorable $984 Direct materials price variance—favorable $1,160 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials…arrow_forward
- Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 7,600 Ib. Actual unit price of direct materials $4.00 per Ib. Units of finished product manufactured 3,650 units Standard direct materials per unit of finished product 2 lb. Direct materials quantity variance-unfavorable $1,260 Direct materials price variance-unfavorable $1,520 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unitarrow_forwardPerformance Eval Variances: Refer to the picture. Thanks!arrow_forwardKk92.arrow_forward
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