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The DeShannon Company produces a product that requires 4 kilograms of raw materials at a cost of $10 per kilogram (at standard). Data for the
The DeShannon Company produces a product that requires 4 kilograms of raw materials at a cost of $10 per kilogram (at standard). Data for the previous month are as follows: | |||
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| Units produced | 4321 |
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| Kilograms of raw materials purchased | 21174 |
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| Kilograms of raw materials used | 16136 |
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| Actual cost per kilogram | $9 |
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What is the direct materials price variance? Note that a negative number indicates an unfavourable variance. |
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