Standard Direct Materials Cost Per Unit from Variance Data The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys:   Quantity of direct materials used 7,500 lbs.   Actual unit price of direct materials $4.10 per lb.   Units of finished product manufactured 3,600 units   Standard direct materials per unit of finished product 2 lbs.   Direct materials quantity variance—unfavorable $1,260   Direct materials price variance—favorable $750   Determine the standard direct materials cost per unit of finished product, assuming that there was no work-in-process inventory at either the beginning or the end of the month. Round your answer to the nearest cent. $fill in the blank 1 per unit

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 6E: Standard direct materials cost per unit from variance data The following data relating to direct...
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Standard Direct Materials Cost Per Unit from Variance Data

The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys:

  Quantity of direct materials used 7,500 lbs.
  Actual unit price of direct materials $4.10 per lb.
  Units of finished product manufactured 3,600 units
  Standard direct materials per unit of finished product 2 lbs.
  Direct materials quantity variance—unfavorable $1,260
  Direct materials price variance—favorable $750

 

Determine the standard direct materials cost per unit of finished product, assuming that there was no work-in-process inventory at either the beginning or the end of the month. Round your answer to the nearest cent.

$fill in the blank 1 per unit

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