A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920.The materials price variance was $1,370 favorable.The standard price per kilogram for the raw material must be:

A) $0.20
B) $3.00
C) $3.20
D) $3.40

Question

kevin nicholas · Accepted Answer

Final Answer : D, Explanation :  Materials price variance = (AQ × AP)- (AQ × SP)$1,370 F = $21,920 - (6,850 kilograms × SP)-$1,370 = $21,920 - (6,850 kilograms × SP)6,850 kilograms × SP = $21,920 + $1,3706,850 kilograms × SP = $23,290SP = $23,290 ÷ 6,850 kilogramsSP = $3.40 per kilogram

A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920.The materials price variance was $1,370 favorable.The standard price per kilogram for the raw material must be:

A) $0.20
B) $3.00
C) $3.20
D) $3.40

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Learning Objectives

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A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920.The materials price variance was $1,370 favorable.The standard price per kilogram for the raw material must be:A) $0.20B) $3.00C) $3.20D) $3.40

Definitions

Learning Objectives

Learning Objectives

Related questions

A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920.The materials price variance was $1,370 favorable.The standard price per kilogram for the raw material must be:

A) $0.20
B) $3.00
C) $3.20
D) $3.40