Answer
Actual Price Per Pound of Direct Materials Purchased:
Actual Price = Cost of Direct Material Purchases / Direct Material Purchases
= \$432,000 / 160,000 pounds
= \$2.70 per pound
Work Step by Step
Actual Price Per Pound of Direct Materials Purchased:
Actual Price = Cost of Direct Material Purchases / Direct Material Purchases
= \$432,000 / 160,000 pounds
= \$2.70 per pound