During the month of December, Cakers Express purchased 20,000 kg of flour at $2 per kilogram.
-Refer to the Figure.At the end of December,Cakers Express found that it had an unfavourable materials price variance of $1,000.What is the flour's standard cost per kilogram?
A)$0.95
B)$1.00
C)$1.05
D)$1.95

Question

Quizplus · Accepted Answer

The materials price variance formula is (Actual Price - Standard Price) x Actual Quantity. Given an unfavourable variance of $1,000 and an actual quantity of 20,000 kg, we can set up the equation: ($2 - Standard Price) x 20,000 = $1,000. Solving for the Standard Price gives us $1.95 per kilogram.

During the Month of December, Cakers Express Purchased 20,000 Kg