Question

The standard costs and actual costs for direct materials for the manufacture of 2,300 actual units of product are Standard Costs Direct materials (per completed unit) 1,040 kilograms @$8.65 Actual Costs Direct materials 2,300 kilograms @ $8.05 Round your final answer to the nearest dollar. The amount of direct materials price variance is

Answer 1

Answer:

$1,380

Explanation:

Data provided in the question:

Standard Direct materials cost = $8.65

Actual Direct materials cost = $8.05

Actual Direct materials = 2,300

Standard Direct materials = 1,040

Now,

The amount of direct materials price variance

= (Standard cost - Actual cost ) × Actual quantity

= ( $8.65 - $8.05 ) × 2,300

= 0.6 × 2,300

= $1,380