Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase.
What is the standard quantity of direct materials per unit for Malkovich Company?
A) 3.50 lbs.
B) 3.00 lbs.
C) 3.10 lbs.
D) 3.25 lbs.

Question

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:  Malkovich Company reports its material price variances at the time of purchase.
What is the standard quantity of direct materials per unit for Malkovich Company?
A) 3.50 lbs. 
B) 3.00 lbs. 
C) 3.10 lbs. 
D) 3.25 lbs.

Quizplus · Accepted Answer

To calculate the standard quantity of direct materials, we need to use the following formula:
Standard Quantity = Units Produced x Standard Quantity per Unit
From the given information, we know that the standard quantity per unit is 3.00 lbs (Option B) and the company produced 10,000 units in July. Therefore,
Standard Quantity = 10,000 units x 3.00 lbs per unit
Standard Quantity = 30,000 lbs
Hence, the standard quantity of direct materials per unit for Malkovich Company is 3.00 lbs.

Malkovich Company Uses a Standard Costing System