Question

The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys:
Quantity of direct materials used ......... 12,000 lbs.
Actual unit price of direct materials ........ $2.30 per lb.
Units of finished product manufactured ...... 5,900 units
Standard direct materials per unit of finished product ... 2 lbs.
Direct materials quantity variance—unfavorable ..... $410
Direct materials price variance—favorable ........ $3,000

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.



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  • CreatedFebruary 04, 2014
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