Suver Corporation has a standard costing system. The following data are available for June: The actual price per pound of direct materials purchased in June was:

Question

Suver Corporation has a standard costing system. The following data are available for June:  The actual price per pound of direct materials purchased in June was:

Quizplus · Accepted Answer

Materials price variance = AQ × (AP - SP)
$6,000 U = 24,000 pounds × (AP - $6.00 per pound)
$6,000 = 24,000 pounds × (AP - $6.00 per pound)
AP - $6.00 per pound = $6,000 ÷ 24,000 pounds
AP - $6.00 per pound = $0.25 per pound
AP = $6.00 per pound + $0.25 per pound
AP = $6.25 per pound

Suver Corporation Has a Standard Costing System