Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: $\begin{array}{ll}
\text { Standard price per lb. } & \$ 18.00 \
\text { Actual purchase price per lb. } & \$ 16.50 \
\text { Quantity purchased } & 3,100 \mathrm{lbs} . \
\text { Quantity used } & 2,950 \mathrm{lbs} \
\text { Standard quantity allowed for actual output } & 3,000 \mathrm{lbs} \
\text { Actual output } & 1,000 \text { units }
\end{array}$ Malkovich Company reports its material price variances at the time of purchase.
What is the standard quantity of direct materials per unit for Malkovich Company?
A)3.50 lbs.
B)3.00 lbs.
C)3.10 lbs.
D)3.25 lbs.

Question

Quizplus · Accepted Answer

The standard quantity of direct materials per unit is calculated by dividing the standard quantity allowed for actual output by the actual output. Given that the standard quantity allowed for actual output is 3,000 lbs and the actual output is 1,000 units, the standard quantity per unit is 3,000 lbs / 1,000 units = 3.00 lbs.

Malkovich Company Uses a Standard Costing System Malkovich Company Reports Its Material Price Variances at the Time