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Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 90,000 gallons Total quantity of DM budgeted
| Consider the following information for Dave Company for the month of May: | ||||||||
| Direct materials (DM) purchased and used | 90,000 | gallons | ||||||
| Total quantity of DM budgeted to be used in May production | 88,000 | gallons | ||||||
| Actual cost of DM purchased and used in May | $171,000 | |||||||
| Unfavorable DM quantity variance | $4,000 | |||||||
| What is the DM price variance in May? | ||||||||
| A. | $9,000 Unfavorable | |
| B. | $9,000 Favorable | |
| C. | $5,000 Unfavorable | |
| D. | $4,000 Favorable | |
| E. | $5,000 Favorable |
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