The Wright Company has a standard costing system.The following data are available for September: The actual price per pound of direct materials purchased in September is:
A)$1.85
B)$2.00
C)$2.10
D)$2.15

Question

The Wright Company has a standard costing system.The following data are available for September:  The actual price per pound of direct materials purchased in September is:
A)$1.85 
B)$2.00 
C)$2.10 
D)$2.15

Quizplus · Accepted Answer

Materials price variance = AQ (AP - SP)
25,000 pounds (AP - $2 per pound)= $2,500 U
25,000 pounds F1F1F1S1F1F1F10 AP - $50,000 = $2,500 U
25,000 pounds F1F1F1S1F1F1F10 AP - $50,000 = $2,500
25,000 pounds F1F1F1S1F1F1F10 AP = $52,500
AP = $52,500 F1F1F1S1F1F1F10 25,000 pounds
AP = $2.10 per pound

The Wright Company Has a Standard Costing System