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Razzle Baking Company gathered the following actual results for the current month: Actual amounts: Units produced 5,500 Direct materials purchased and used (7,500 lbs.) $25,000
Razzle Baking Company gathered the following actual results for the current month:
Actual amounts:
Units produced 5,500
Direct materials purchased and used (7,500 lbs.) $25,000
Budgeted production and standard costs were:
Budgeted production 5,000 units
Direct materials 1.5 lbs./unit at $3/lb.
What is the direct materials price variance?
$2,500 unfavorable
$2,500 favorable
$2,750 favorable
$2,750 unfavorable
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