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Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. Direct materials standard (6 lbs. @
Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance.
Direct materials standard (6 lbs. @ $2/lb.) | $ | 12 | per finished unit | |
Actual direct materials used | 243,000 | lbs. | ||
Actual finished units produced | 40,000 | units | ||
Actual cost of direct materials used | $ | 483,570 | ||
Multiple Choice
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$3,570 favorable.
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$6,000 unfavorable.
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$3,570 unfavorable.
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$2,430 favorable.
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$2,430 unfavorable.
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