The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
-The direct materials price variance is
A)$1,795.50 favorable
B)$378.00 favorable
C)$4,512.50 unfavorable
D)$378.00 unfavorable

Question

Quizplus · Accepted Answer

The direct materials price variance is unfavorable because the actual price per yard is higher than the standard price per yard. The unfavorable variance is calculated as follows:(Actual price per yard - Standard price per yard) x Actual yards used($2.10 - $2.00) x 4.75 yards = $0.10 per yard$0.10 per yard x 9,500 yards = $950 unfavorable

The Following Data Relate to Direct Materials Costs for February