The following data relating to direct materials cost for March of the current year are taken from the records of Top Toys Inc., a manufacturer of plastic toys:
|
Quantity of direct materials used |
40,000 pounds |
|
Actual unit price of direct materials |
$1.48 per pound |
|
Units of finished product manufactured |
7,600 units |
|
Standard direct materials per unit of finished product |
5 pounds |
|
Direct materials quantity variance—unfavorable |
$2,700 |
|
Direct materials price variance—unfavorable |
$5,200 |
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month.