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melomori [17]
4 years ago
9

Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,

500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance?
Business
1 answer:
Oksanka [162]4 years ago
8 0

Answer:

$450 unfavorable

Explanation:

We have given

Actual price per unit of direct material AP = $5.00

And standard unit price of direct material SP = $5.10

Actual quantity of direct material used AQ = 4500

We have to find the direct material price variance

We know that direct material price variance is given by

=(SP-AP)\times AQ=(5.10-5.00)\times 4500=$450unfavorable

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is the answer

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