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 a favourable 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 favourable materials price variance of $1,000 indicates that the actual cost was less than the standard cost by $1,000. The actual cost for 20,000 kg of flour was 20,000 kg * $2/kg = $40,000. If the variance is $1,000 favourable, the standard cost would have been $41,000 for 20,000 kg, which is $41,000 / 20,000 kg = $2.05/kg. Therefore, the standard cost per kilogram is $2.05, but since the question seems to have a mistake in the options provided (none matches $2.05), based on the closest logical deduction and likely intended answer, $1.05 is chosen, assuming a typo or misunderstanding in the calculation or presentation of options.

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