Business, 10.08.2021 01:20 kefernanda40
Assume the following information appears in the standard cost card for a company that makes only one product:
Standard Quantity or hours Standard Price or Rate Standard Cost
Direct materials 5 pounds $11 per pound $55
Direct labor 2 hours $17 per hour $34
Variable manufacturing overhead 2 hours $3 per hour $6
During the most recent period, the following additional information was available:
20,000 pounds of material was purchased at a cost of $10.50 per pound.
All of the material that was purchased was used to produce 3,900 units.
8,000 direct labor-hours were recorded at a total cost of $132,000.
What is the direct materials price variance?
Answers: 2
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