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dedylja [7]
3 years ago
8

Century Manufacturing developed the following per-unit standards for its product: 4 pounds of direct materials at $6.40 per poun

d. Last month, 3,000 pounds of direct materials were purchased for $18,240. The direct materials price variance for last month was
Business
1 answer:
Bond [772]3 years ago
4 0

Answer:

price variance   960.00 F

Explanation:

(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance

std cost                 $6.40

actual cost         $6.08 (18,240 total cost/ 3,000 units purchased)

quantity           3,000

(6.40 - 6.08) \times 3,000 = DM \: price \: variance

difference         $0.32

3,00 x 0.32 = price variance

price variance   $960.00

The actual cost was below the standard. It cost less to purchase each pound. This variance is favorable

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