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Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 72,000 gallons Total quantity of DM budgeted
| Consider the following information for Dave Company for the month of May: | ||||||||
| Direct materials (DM) purchased and used | 72,000 | gallons | ||||||
| Total quantity of DM budgeted to be used in May production | 68,800 | gallons | ||||||
| Actual cost of DM purchased and used in May | $152,800 | |||||||
| Unfavorable DM quantity variance | $7,200 | |||||||
| What is the DM price variance in May? | ||||||||
| A. | $2,000 Unfavorable | |
| B. | $2,000 Favorable | |
| C. | $9,200 Unfavorable | |
| D. | $9,200 Favorable | |
| E. | $7,200 Unfavorable |
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
