Question
Alpha Company produces a product that requires 2 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units used 35,000 pounds,
Alpha Company produces a product that requires 2 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units used 35,000 pounds, which were purchased at $4.00 per pound, the direct materials price variance is _____.
A. $8,750 favorable
B. $8,750 unfavorable
C. $18,750 favorable-AH
D. $18,750 unfavorable
E. none of the above
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
1337270598, 978-1337270595
