Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct...
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Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 3,000 lb. Actual unit price of direct materials $5.50 per lb. 1,400 units Units of finished product manufactured Standard direct materials per unit of finished product Direct materials quantity variance-unfavorable 2 lb. $1,000 Direct materials price variance-unfavorable $1,500 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 end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished 1,400 units Standard finished product for direct materials used 1,500 units Deficiency of finished product for materials used 5 X units Standard cost for direct materials 10 per unit
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