Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A company developed the following per unit standards for its products: 2.30 pounds of direct materials at $5.7 per pound. Last month, 2500 lbs of direct materials were purchased for $5900. The direct materials price variance for last month was

Sagot :

Parrain

Answer: $5,010 Favorable

Explanation:

Direct materials price variance is calculated by the formula:

= (Standard Price - Actual Price) * Quantity Purchased

Actual price = Amount pounds were purchased for / Pounds purchased

= 5,900 / 2,500

= $2.36

Direct materials price variance = (5.7 - 2.36) * 2,500

= $5,010 Favorable

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.