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Problem 23-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the...

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Accounting

Problem 23-4A (Part Level Submission) Kansas Company uses astandard cost accounting system. In 2017, the company produced27,600 units. Each unit took several pounds of direct materials and1.6 standard hours of direct labor at a standard hourly rate of$13.00. Normal capacity was 49,700 direct labor hours. During theyear, 130,800 pounds of raw materials were purchased at $0.91 perpound. All materials purchased were used during the year. (a) Youranswer is correct. If the materials price variance was $5,232favorable, what was the standard materials price per pound? (Roundanswer to 2 decimal places, e.g. 2.75.) Standard materials priceper pound $ Click if you would like to Show Work for this question:Open Show Work Show Solution Show Answer Link to Text Link to TextAttempts: 1 of 3 used (b) If the materials quantity variance was$14,136 unfavorable, what was the standard materials quantity perunit? (Round answer to 1 decimal place, e.g. 1.5.) Standardmaterials quantity per unit

Answer & Explanation Solved by verified expert
4.5 Ratings (657 Votes)

Answer to Part (a)
Actual Quantity (AQ)                   130,800
Actual Price (AP) 0.91
Standard Price (SP) ???
Given,
Material Price Variance 5232 Favorable
AQ*(SP - AP) 5232
130800 * (SP - 0.91) 5232
SP - 0.91 5232/130800
SP - 0.91 0.04
SP 0.04 + 0.91
Standard Price (SP) 0.95
Standard Material Price per pound $0.95
Answer to Part (b)
Given,
Material Quantity Variance 14136 Unfavorable
SP*(SQ - AQ) -14136
0.95* (SQ - 130800) -14136
(SQ - 130800) -14136/0.95
(SQ - 130800) -14880.00
SQ -14880+130800
SQ 115920.00
Standard Quantity required for Actual Output                             115,920
Actual output 27600
Standard materials quantity per unit (115920/27600)                                    4.20

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