A company has the following information available about one of its products: Sta

Question

A company has the following information available about one of its products:

Standard price per pound of input                               ?

Actual price per pound of input                               $27

Standard inputs per unit of output                   3 pounds

Actual units of output                                            3,000

Direct Materials Price Variance                        $18,000 F

Actual pounds of input used                                  9,000

What is the standard price per pound of input?

A) $25

B) $27

C) $29

D) $33

Explanation / Answer

Standard price per pound of input = 27+ (18000/9000) = $29 Option C is correct

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