Gibson Manufacturing Company produces a single product. The following data apply to the standard cost...
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Accounting
Gibson Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product:
Materials quantity per unit
1
pound
Materials price
$
5.70
per pound
Labor quantity per unit
2
hours
Labor price
$
9.70
per hour
During the year, the company made 1,940 units of product. At the end of the year, the following variances had been calculated.
Materials usage variance
$
855
Favorable
Materials price variance
$
179
Unfavorable
Labor usage variance
$
2,619
Unfavorable
Labor price variance
$
2,905
Favorable
Required
Determine the actual amount of materials used.
Determine the actual price paid per pound for materials. (Round your answer to 2 decimal places.)
Answer & Explanation
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