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TicketMaster Entertainment employs a standard cost system in which direct materials inventory is carried at standard cost. TicketMaster has established the following standards for the
TicketMaster Entertainment employs a standard cost system in which direct materials inventory is carried at standard cost. TicketMaster has established the following standards for the prime costs of one unit of product. Standard Quantity 9 pounds 35 hour Standard Price $ 1.80 per pound $10.00 per hour Direct Materials Direct Labor Standard Cost $16.20 3.50 $19.70 During December, TicketMaster purchased 189,000 pounds of direct materials at a total cost of $378,000. The total factory wages for December were $46,000, 80% of which were for direct labor. Ticket Master manufactured 18,000 units of product during December using 155,000 pounds of direct materials and 5,000 direct labor hours. Ticket Master computes direct material variances at the time of purchase. What is the direct materials price variance for December? $48,600 $37,800. $12,600 $31,000
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