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7 April, 17:48

A company uses 8400 pounds of materials and exceeds the standard by 300 pounds. the quantity variance is $1800 unfavorable. what is the standard price?

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  1. 7 April, 18:19
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    The company has an unfavorable price of $ 1,800 because it exceeded the standard with 300 pounds. It means that for every pounds the company pays 1800/300 = $ 6. Therefore the price of the standard would be $ 6 / pounds giving a total of 8400 * 6 = $ 50,400
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