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 3,800 lbs. actual unit price of direct materials $6 per lb. units of finished product manufactured 1,820 units standard direct materials per unit of finished product 2 lbs. direct materials quantity variance—unfavorable $976 direct materials price variance—favorable $380 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.

Standard price= $6.1

Explanation:

Giving the following information:

The quantity of direct materials used 3,800 lbs. Actual unit price of direct materials $6 per lb. Units of finished product manufactured 1,820 units Standard direct materials per unit of finished product 2 lbs.

Direct materials quantity variance—unfavorable $976 Direct materials price variance—favorable $380.

Direct material price variance= (standard price - actual price)*actual quantity

380= (SP - 6)3,800

6.1= standard price

Direct material quantity variance= (standard quantity - actual quantity)*standard price

976= (1820*2 - 3,800)*SP

6.1= standard price

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answer; synthetic production system;