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Hanson Inc. has the following direct materials standard to manufacture one Zippy:
1.5 pounds per Zippy at $4.00 per pound
Last week, 1,700 pounds of materials were purchased and used to make 1,000 Zippies.
The materials cost a total of $6,630.
Problem 1. How many pounds of materials should Hanson have used to make 1,000 Zippies?
a. 1,700 pounds
b. 1,500 pounds
c. 1,200 pounds
d. 1,000 pounds
Problem 2. Hanson's materials quantity variance (MQV) for the week was:
a. $170 unfavorable
b. $170 favorable
c. $800 unfavorable
d. $800 favorable
Problem 3. Hanson's materials price variance (MPV) for the week was:
Crede Manufacturing Company uses a standard cost, Find what was the standard materials price per kilogram? (Round answer to 2 decimal places, e.g. 5.25.)
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