Fletcher Company collected the following data regarding production of one of its products.

-Compute the direct materials price variance.
A)$2,430 unfavorable.
B)$3,570 unfavorable.
C)$2,430 favorable.
D)$6,000 unfavorable.
E)$3,570 favorable.

Question

Fletcher Company collected the following data regarding production of one of its products.

-Compute the direct materials price variance. 
A)$2,430 unfavorable. 
B)$3,570 unfavorable. 
C)$2,430 favorable. 
D)$6,000 unfavorable. 
E)$3,570 favorable.

Quizplus · Accepted Answer

Direct materials price variance = AQ(AP-SP)
= 18,000($1.80-$1.70)
= $2,430 favorable.

Fletcher Company Collected the Following Data Regarding Production of One