Answer:
Direct material price variance= $53.69 unfavorable
Explanation:
Giving the following information:
Actual purchase= 4,130 pounds of plastic
Actual cost= $5,972 (total)
The standard price for the plastic is $1.433 per pound.
The company used 4,060 pounds of the plastic to produce 18,500 dive masks.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 5,972/4,130= $1.446
Direct material price variance= (1.433 - 1.446)*4,130= $53.69 unfavorable
