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Denim Manufacturing Company produces denim jeans in batches of 100 units. The standard cost of each batch consists of 200 pounds of fabric at a
Denim Manufacturing Company produces denim jeans in batches of 100 units. The standard cost of each batch consists of 200 pounds of fabric at a cost of $5 per pound, 25 direct labor hours at $11 per hour, and variable overhead coat (based on machine hours at the rate of $16 per machine hour with 24 machine hours per batch. The following variable costs were incurred for the most recent 100 units produced: Direct Materials 280 pounds costing $1,700 were purchased and used Direct Labor 20 hours costing $265 Variable Overhead Machine Hours Used 18 hours $410 Calculate the company's direct materials price variance. a. -$96 F Ob.-$55 F c. $300 u d. $400 U
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