Question
Oliver Enterprises has collected the following data for one of its products: Direct materials standard (7 pounds per unit @ $0.54/lb.) $3.78 per finished good
Oliver Enterprises has collected the following data for one of its products:
| Direct materials standard (7 pounds per unit @$0.54/lb.) | $3.78 per finished good |
| Actual direct materials purchased | 31,000 pounds |
| Actual Direct Materials Used (AQU) | 29,000 pounds |
| Actual Price (AP) paid per pound | $0.64 |
How much is the direct materials price variance?
A. $2,900 favorable
B. $3,100 unfavorable
C. $2,900 unfavorable
D. $3,100 favorable
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
