Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00
Actual purchase price per lb. $16.50
Quantity purchased 3,100 lbs.
Quantity used 2,950 lbs.
Standard quantity allowed for actual output 3,000 lbs.
Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Malkovich Company?
A) 3.50 lbs.
B) 3.00 lbs.
C) 3.10 lbs.
D) 3.25 lbs.

Question

Quizplus · Accepted Answer

The standard quantity of direct materials per unit can be calculated as follows:

Standard quantity per unit = Standard quantity allowed for actual output / Actual output
= 3,000 lbs / 1,000 units
= 3 lbs per unit

Therefore, the answer is B: 3.00 lbs.

Malkovich Company Uses a Standard Costing System