Compute the purchase price per pound for direct materials

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Reference no: EM13876991

Materials Variances-Working Backwards SMP Company has the following operating data for the month just completed:

Direct materials purchased                          40,000 pounds
Direct materials used                                  38,000 pounds
Total cost of direct materials purchased        $120,000
Standard price of direct materials                 $3.50 per pound
Direct materials usage variance-unfavorable   $6,500

Required: Compute for SMP the following:

1. Purchase price per pound for direct materials.

2. Direct materials purchase-price variance.

3. Total standard quantity of direct materials allowed for units produced during the period.

Reference no: EM13876991

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