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Dovator [93]
2 years ago
9

The actual cost of direct materials is​ $47.50 per pound. The standard cost per pound is​ $51.75. During the current​ period, 7,

200 pounds were used in production. The standard quantity for actual units produced is​ 7,100 pounds. How much is the direct materials price​ variance? A. ​$30,600 favorable B. ​$30,600 unfavorable C. ​$30,175 favorable D. ​$30,175 unfavorable
Business
1 answer:
denis-greek [22]2 years ago
6 0

Answer:

A. ​$30,600 favorable

Explanation:

The computation of the direct material price variance is shown below:

Direct Materials Price Variance = Actual quantity used × (Actual Cost - Standard Cost)

= 7,200 pounds ×($47.50 per pound - $51.75 per pound)

= $30,600 Favorable

Hence, the  direct material price variance is $30,60 favorable

So the same should be considered

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