Price per unit 10.5 * 2.5 = 26.25
Standard cost for actual production = 12000*2.5
=30,000
Variance =1815
Actual production = 30000+1815 =31815 /26.25 =1212
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Bilal Mohammad
Accountant
Abudhabi
United Arab Emirates
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Original Message:
Sent: 05-15-2023 10:13 AM
From: Sura Hitesh
Subject: on actual hrs used
The standard direct material cost per unit for a product is calculated as follows: 10.5 liters at $2.50 per liter. Last month the actual price paid for 12,000 liters of material used was 4% above standard and the direct material usage variance was $1,815 favorable. No inventory of material is held.
What was the actual production last month (in units)?