contestada

Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance?

Respuesta :

Answer:

$450 unfavorable

Explanation:

We have given

Actual price per unit of direct material AP = $5.00

And standard unit price of direct material SP = $5.10

Actual quantity of direct material used AQ = 4500

We have to find the direct material price variance

We know that direct material price variance is given by

[tex]=(SP-AP)\times AQ=(5.10-5.00)\times 4500=$450unfavorable[/tex]

Otras preguntas