Acompany developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. last month, 1,500 pounds of direct materials were purchased for $5,700. the direct materials price variance for last month was
a. 5,700 favorable
b. $300 favorable
c. $150 favorable
d. $300 unfavorable

b. $300 Favorable

Explanation:

The computation of the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= 1,500 pounds × ($19.30 - $5,700 ÷ 1,500 pounds)

= 1,500 pounds × ($4 - $3.8)

= 1,500 pounds × $0.2

= $300 favorable

We simply take the difference of the prices and then multiplied it by the actual quantity so that the correct amount can be calculated

what is data classification and what can it do for my business?

data classification is an approach to identifying, protecting and managing information which has rapidly become best practice. implemented as part of a layered security strategy, it enables an enterprise to defend itself against a variety of threats – from aggressive outsiders to untrained or well-meaning insiders – while unlocking the full potential of its data to drive innovation and productivity.

in this whitepaper we have put together a comprehensive introduction to data classification and the benefits it will have for your business.