The Swenson Corporation has a standard costing system.The following data are available for June: The actual price per pound of direct materials purchased in June is:

Question

The Swenson Corporation has a standard costing system.The following data are available for June:  The actual price per pound of direct materials purchased in June is:

Quizplus · Accepted Answer

Materials price variance = AQ × (AP - SP)
$7,000 U = 35,000 pounds × (AP - $4 per pound)
$7,000 = 35,000 pounds × (AP - $4 per pound)
AP - $4 per pound = $7,000 ÷ 35,000 pounds
AP - $4 per pound = $0.20 per pound
AP = $4 per pound + $0.20 per pound
AP = $4.20 per pound

The Swenson Corporation Has a Standard Costing System