Question

Cavern Company's output for the current period results in a $6,400 unfavorable direct material price variance. The actual price per pound is $62.00 and the standard price per pound is $60.00. How many pounds of material are used in the current period

Answer 1

Answer:

3,200 unit

Explanation:

Direct materials price variance = Quantity used * (Standard price - Actual price)

-$6,400 = Quantity used * ($60.00 - $62.00)

-$6,400 = Quantity used * -$2.00

Quantity used = -$6,400/-$2.00

Quantity used = 3,200 unit

So, the quantity of pounds of material used in the current period is 3,200 unit