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The following information is provided by the Atlas Company: Actual direct material cost $ 27,000 Standard direct material cost $ 23,000 Direct material usage variance

The following information is provided by the Atlas Company:

Actual direct material cost $ 27,000
Standard direct material cost $ 23,000
Direct material usage variance $ 2,000 unfavorable

What is the direct material price variance?

Multiple Choice

  • $2,000 favorable

  • Not enough information is provided

  • $6,000 unfavorable

  • $2,000 unfavorable

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