The Swenson Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 35,000 pounds Standard price of direct materials $4 per pound Material price variance $7,000 unfavorable Material quantity variance $4,200 favorable The actual price per pound of direct materials purchased in June is:

Actual price= $4.2 per pound

Explanation:

Giving the following information:

Actual quantity of direct materials purchased 35,000 pounds

Standard price of direct materials $4 per pound

Material price variance $7,000 unfavorable

To calculate the actual price, we need to use the direct material price variance formula:

Direct material price variance= (standard price - actual price)*actual quantity

-7,000 = (4 - actual price)*35,000

-7,000= 140,000 - 35,000actual price

35,000actual price= 147,000

Actual price= $4.2 per pound

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