Question - Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows:
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Product Names
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Steel
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Plastic
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Direct materials information
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|
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Standard pounds per unit
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1 lb
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0.5 lb
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Standard Price (SP) per pound
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$1.50
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?
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Actual Quantity (AQ) used per unit
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1.5 lbs
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0.75 lbs
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Actual Price (AP) paid for material
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$1.25
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$2.00
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Actual Quantity Purchased (AQP) and used
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2,500 lbs
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1,200 lbs
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Price variance
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?
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$900 F
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Quantity variance
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$206 U
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?
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Flexible budget variance
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?
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$522 F
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Number of units produced
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275
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550
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What is the standard direct material price per pound for the plastic in the dolls?
$2.75/lb.
$4.18/lb.
$5.27/lb.
$2.44/lb.