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Problem 23-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the...

Problem 23-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,700 direct labor hours. During the year, 130,800 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year. (a) Your answer is correct. If the materials price variance was $5,232 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Link to Text Attempts: 1 of 3 used (b) If the materials quantity variance was $14,136 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal place, e.g. 1.5.) Standard materials quantity per unit

Solutions

Expert Solution

Answer to Part (a)
Actual Quantity (AQ)                   130,800
Actual Price (AP) 0.91
Standard Price (SP) ???
Given,
Material Price Variance 5232 Favorable
AQ*(SP - AP) 5232
130800 * (SP - 0.91) 5232
SP - 0.91 5232/130800
SP - 0.91 0.04
SP 0.04 + 0.91
Standard Price (SP) 0.95
Standard Material Price per pound $0.95
Answer to Part (b)
Given,
Material Quantity Variance 14136 Unfavorable
SP*(SQ - AQ) -14136
0.95* (SQ - 130800) -14136
(SQ - 130800) -14136/0.95
(SQ - 130800) -14880.00
SQ -14880+130800
SQ 115920.00
Standard Quantity required for Actual Output                             115,920
Actual output 27600
Standard materials quantity per unit (115920/27600)                                    4.20

ekkarill92 answered 6 months ago
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