Information about direct materials cost follows for a local
company:
| Standard price per materials gram | $ | 16 | |
| Actual quantity used | 2,250 | grams | |
| Standard quantity allowed for production | 2,375 | grams | |
| Price variance | $ | 14,400 | F |
Required:
What was the actual purchase price per gram? (Round your answer to 2 decimal places.)
Price Variance = (SP-AP) *AQ
(16 - AP) *2250 = 14400
(16 - AP) = 14400/2250 = 6.40
AP = 16 - 6.40
= 9.60
Comment if you face any issues
Information about direct materials cost follows for a local company: Standard price per materials gram $...