Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows: What is the standard direct material price per pound for the plastic in the dolls?

Question

Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows:  What is the standard direct material price per pound for the plastic in the dolls?

Quizplus · Accepted Answer

To calculate the standard direct material price per pound for plastic in the dolls, we need to use the following formula:

Standard price per pound = (Total cost of material used / Total pounds of material used)

According to the table provided in the question, the total cost of plastic used in the dolls is $1,375, and the total pounds of plastic used is 500. Therefore, the standard direct material price per pound for plastic in the dolls is:

Standard price per pound = $1,375 / 500 pounds = $2.75/lb.

So, the correct choice is A.

Tommy's Toys Produces Two Types of Toys: Trains and Dolls