Standard Direct Materials Cost per Unit from Variance Data Determine the standar

Question

Standard Direct Materials Cost per Unit from Variance Data

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 answers to two decimal places.

Please help me solve this problem, and show work So I know how to do this.

Product finished: units Standard finished product for direct materials used: units Deficiency of finished product for materials used: units Standard cost for direct materials: $ Quantity of direct materials used 2,000 lbs. Actual unit price of direct materials $2.40 per lb. Units of finished product manufactured 460 units Standard direct materials per unit of finished product 4 lbs. Direct materials quantity variance-unfavorable $500 Direct materials price variance-favorable $1,450

Explanation / Answer

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 answers to two decimal places.

Standard Qty of Raw Material required for finished goods = 4*460 = 1840lbs

Direct material Qty Variance = (Standard Qty of Raw Material - Actual Qty Of Raw Material)*Standard Price

-$500 =(1840-2000)*Standard Price

Standard Price per lbs= -500/-160 = $3.125

Standard Cost Per unit of Finished Goods = 3.125*4 = $12.50

Product finished: 460 units Standard finished product for direct materials used= 2000/4=500 500 units Deficiency of finished product for materials used =500-460 =40 40 units Standard cost for direct materials: $12.50

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.