Crane WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,130 pounds of plastic to use in its dive masks, at a cost of $5,972. The standard price for the plastic is $1.433 per pound. The company actually used 4,060 pounds of the plastic to produce 18,500 dive masks.

a. Calculate crane waterworks direct materials price variance for the month.

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

previous business sales - c.

b. a single paragraph.

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