Problem
Use the information provided to answer the questions.
Actual amount paid per pound for materials. $14.50
Total standard pounds for units produced this period. 12,500
Pounds of materials used 13,250
Direct materials price variance (favorable) $4,637.50
All material purchased was used in production.
1) What is the standard price paid for materials?
2) What is the direct materials quantity variance?
3) What is the total direct materials cost variance?
4) If the direct materials price variance was unfavorable, what would be the standard price?