Based on the following information, calculate the direct materials price variance. $$\begin{array} { l l }
\text { Actual costs } & 3,590 \text { pounds at } \$ 8.00 \
\text { Standard costs } & 4,100 \text { pounds at } \$ 6.00
\end{array}$$
A) $7,700 favorable
B) $8,200 favorable
C) $7,180 unfavorable
D) $8,100 unfavorable

Question

Based on the following information, calculate the direct materials price variance. $$\begin{array} { l l } 
\text { Actual costs } & 3,590 \text { pounds at } \$ 8.00 \
\text { Standard costs } & 4,100 \text { pounds at } \$ 6.00
\end{array}$$
A) $7,700 favorable
B) $8,200 favorable
C) $7,180 unfavorable
D) $8,100 unfavorable

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. Here, it is ($8.00 - $6.00) x 3,590 = $2.00 x 3,590 = $7,180 unfavorable.

Based on the Following Information, Calculate the Direct Materials Price