Please help with calculations. I believe I need to take the price variance 1,307 and divided by the pounds of raw material 130,700. Then I am unclear as to the next step.
Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 50,400 direct labor hours. During the year, 130,700 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year.
If the materials price variance was $1,307 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.)
Standard materials price per pound$
Answer Standard... View the full answer