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Standard cost / unit to manufacture Z - frames: Direct material 3 yards X $ 2 . 5 0 / yd . $ 7 .

Standard cost/unit to manufacture Z-frames:

Direct material 3 yards X $2.50/ yd. $7.50

Direct labor 5 hours X $7.50/ hr. $37.50

Actual costs incurred to produce 7,800 Z-frame units:

Direct material purchased and used 23,100 yards X $2.70/ yd. $62,370

Direct labor 40,100 hours X $7.30 $292,730

Using this information, compute the Direct Material Price Variance.

  

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