Question

Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows: Product Names Steel Plastic pri Direct materials information ma Standard pounds per unit 3 lb. 1.5 lb. $1 Standard Price (SP) per pound $3.00 Actual Quantity (AQ) used per unit 2.5 lbs. 2 lbs. ation: Actual Price (AP) paid for material $1.75 $1.50 solu Actual Quantity Purchased (AQP) and used 2,700 lbs. 1,200 lbs Price variance $5,400 F Quantity variance $375 U ash dis Flexible budget variance $4,050 F chedule LOADINO A. $0.22Mb. See solu OB. $1.72/b. OC. $6.00/b. OD. $12.00/b. Maris Br May, ant in its pre A: See solu Q: to) Cash schedule Chick to select your answer. LOADIN A: Feb MacBook Pro + * + esc → I c Search or enter address

what is the standard direct material price per pound for the plastic in the dolls

Answer 1

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Tommy's Toy	Amount $	Note
Actual Quantity of plastic purchased	1,200.00	A
Actual price per pound of plastic	1.50	B
Actual cost of plastic	1,800.00	C=A*B
Add: Favorable price variance	5,400.00	D
Standard cost of plastic	7,200.00	E=C+D
Actual Quantity of plastic purchased	1,200.00	See A
Standard cost per pound of plastic	6.00	F=E/A
So answer is option C.