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:
A)$6.10 per pound
B)$5.90 per pound
C)$6.25 per pound
D)$6.30 per pound

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:
A)$6.10 per pound 
B)$5.90 per pound 
C)$6.25 per pound 
D)$6.30 per pound

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