Material Variance: Katrina Company’s direct material costs

Question:

Katrina Company’s direct material costs are as follows:

Standard unit price                                                                P  3.60

Actual quantity purchased                                                     1,600

Standard quantity allowed for actual production              1,450

Materials purchase price variance — favorable               P   240

Required: Compute the actual purchase price per unit, rounded to the nearest centavos.

Solved!