Discuss te below:
Q: Crede Manufacturing uses standard cost accounting. In 2005, 33000 units were produced. Each unit took several pounds of direct materials and 1 1/3 standard hours of direct labor at a standart hourly rate of $12.00. Normal capacity was 42,000 direct labor hours. During the year 132,000 pounds of raw materials were purchased at $0.90 per pound. All pounds purchased were used during the year.
a. If materials price variance was $3960 unfavorable, what was the standard materials price per pound?
b. If the materials quantity variance was $2,871 favorable, what was the standard materials quantity per unit?