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Ivanhoe Manufacturing Company uses a standard cost accounting system. In 2022, 27,000 units were produced. Each unit took several kilograms of direct materials and 1.6 standard hours of direct labour at a standard hourly rate of $9.00. Normal capacity was 48,300 direct labour hours. During the year, 110,700 kg of raw materials were purchased at $0.97 per kilogram. All materials purchased were used during the year.
Problem 1: If the materials price variance was $3,321 favourable, what was the standard materials price per kilogram? (Round answer to 2 decimal places, e.g. 5.25.)
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