Question

The following data relating to direct materials cost for March of the current year are taken from the records of Top Toys Inc., a manufacturer of plastic toys:
Quantity of direct materials used ....... 40,000 pounds
Actual unit price of direct materials ...... $1.48 per pound
Units of finished product manufactured ....... 7,600 units
Standard direct materials per unit of finished product . 5 pounds
Direct materials quantity variance—unfavorable .... $2,700
Direct materials price variance—unfavorable ...... $5,200

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.



$1.99
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  • CreatedJuly 17, 2012
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