If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials price variance was $1,000 favorable.

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as (standard price - actual price) x actual quantity. Using the given information, the calculation would be ($11 - $12) x 800 = -$800, indicating an unfavorable variance.

If the Standard to Produce a Given Amount of Product