Question

The following data relating to direct materials cost for March of the current year are taken from the records of Play Tyme Inc., a manufacturer of plastic toys:
Quantity of direct materials used ........ 5,000 lbs.
Actual unit price of direct materials ...... $2.40 per lb
Units of finished product manufactured ...... 1,200 units
Standard direct materials per unit of finished product .... 4 lbs.
Direct materials quantity variance—unfavorable .... $500
Direct materials price variance—favorable ........ $500
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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  • CreatedOctober 21, 2011
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