A company purchased 6,850 kgs of material at a total cost of $21,920. The material price variance was $1,370 favourable.
What was the standard price per kg?
$ ________ per kg
The correct answer is: $3.40 per kg
Total standard cost of material purchased - actual cost of material purchased = Price variance
Total standard cost
$21,920 + $1,370
$23,290
Standard price per kg
$23,290/6,850
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