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.AQ * AP given = $483,570;AQ * SP = 243,000 * $2.00 = $486,000

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.AQ * AP given = $483,570;AQ * SP = 243,000 * $2.00 = $486,000

Quizplus · Accepted Answer

Direct materials price variance = (AQ x AP) - (AQ x SP)
= ($483,570) - ($486,000)
= $2,430 favorable.

Fletcher Company Collected the Following Data Regarding Production of One