View the step-by-step solution to:

# I do not understand what to do for unfavorable variance verse favorable variance. Kansas Company uses a standard cost accounting system.

Please help with the calculations. I do not understand what to do for unfavorable variance verse favorable variance.

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.

*(a)

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\$.92

*(b)

If the materials quantity variance was \$11,454 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal place, e.g. 1.5.)

Standard materials quantity per unit \$

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents