A company uses 40,000 kilograms of materials for which they paid $9.00 a kilogram.The materials price variance was $80,000 favourable.What is the standard price per kilogram?
A)$2.00
B)$7.00
C)$10.00
D)$11.00

Question

Quizplus · Accepted Answer

The standard price per kilogram is calculated as follows:Standard price per kilogram = (Actual cost - Favorable variance) / Actual quantity= ($9.00 - $80,000) / 40,000 kilograms= $11.00 per kilogram

A Company Uses 40,000 Kilograms of Materials for Which They