1- The Wright Company has a standard costing system. The following data are available for September:

Actual quantity of direct materials purchased = 40,000 pounds

Standard price of direct materials= $8 per pound

Material price variance= $4,000 unfavorable

Material quantity variance= $3,500 favorable

a) The actual price per pound of direct materials purchased in September is:

b) The Actual standard quantity of direct materials is:

2- Assume that only one product is being sold in each of the following situations (fill in the missing information).

Case 1 Case 2

Units Sold 2,500 -------------

Sales $62,500 $450,000

Variable Expenses $----------- $150,000

Fixed Expenses $35,000 $---------------

Net Income (LOSS) ($17,500) $75,000

Contribution Margin Per Unit $------------- $30