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SB Bryan Company employs a standard...

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Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:

Standard Quantity Standard Price Standard Cost

Direct materials $6\mathrm{.}0$ grams $$3\mathrm{.}50/$gram $$21\mathrm{.}00$

Direct labour $1\mathrm{.}3$ hours $$11\mathrm{.}00/$hour $14\mathrm{.}30$

$$35\mathrm{.}30$

During March, Bryan purchased $170,000$ grams of direct material at a total cost of $$585,750.$ The total factory wages for March were $$400,000,90$ percent of which were for direct labour. Bryan manufactured $25,000$ units of product during March using $151,000$ grams of direct material and $32,000$ direct labour hours.

TB $11-76$ The price variance for the direct...

The price variance for the direct material acquired by the company during March is:

Multiple Choice

$$7,550$ favourable.

$$7,550$ unfavourable.

$$8,250$ unfavourable.

$$8,250$ favourable.