Question

Standard Direct Materials Cost per Unit from Variance Data

The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:

Quantity of direct materials used	6,800 lbs.
Actual unit price of direct materials	$5.2 per lb.
Units of finished product manufactured	1,630 units
Standard direct materials per unit of finished product	4 lbs.
Direct materials quantity variance—unfavorable	$1,512
Direct materials price variance—favorable	$1,360

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.

Product finished		units
Standard finished product for direct materials used		units
Deficiency of finished product for materials used		units
Standard cost for direct materials	$	per unit

Answer 1