Problem 23-4A (part level submission) Kansas Company uses a standard cost accoun

Question

Problem 23-4A (part level submission) Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,400 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 49,550 direct labor hours. During the year, 130,800 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year.

Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,400 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 49,550 direct labor hours. During the year, 130,800 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. ho (a) 3 . Your answer is incorrect. Try agairn If the materials price variance was $5,232 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 275.) Standard materials price per pound Click if you would like to Show Work for this question: Open Show Work 23.53 SHOW SOLUTIONSHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used (b) If the materials quantity variance was $5,723 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal places, e.g. 1.5.) Standard materials quantity per unit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Material Price Variance=AQ consumed(Standard Price-actual Price)

Let Standard Price be X

$5,232=130,800(X-0.94)

$5,232=130,800*X-130,800*0.94

$5,232=130,800X-122,952

130,800X=5232+122,952=$128,184

X=$128,184/$130,800=$0.98

Therefore,Standard Price =$0.98 per unit(Answer)

Material Quantity variance=Standard price(standard quantity required for actual output-Actual quantity consumed)

Let standard quantity be X

(5,723)=0.98(28,400X -130,800)

(5723)=27832X-128,184

X=(128,184-5,723)/27,832=4.40

Standard Material Quantity per unit=4.40 per unit(Answer)

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