Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $\begin{array}{llr}
\text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \
\text { Actual direct materials used} &243,000& \text {Ibs. } \
\text {Actual finished units produced } &40,000& \text {units } \
\text { Actual cost of direct materials used } &\$483,570\
\end{array}$

A) $3,570 unfavorable.
B) $2,430 unfavorable.
C) $3,570 favorable.
D) $2,430 favorable.
E) $6,000 unfavorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $\begin{array}{llr}
  \text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \
 \text {  Actual direct materials used} &243,000& \text {Ibs.  } \
 \text {Actual finished units produced  } &40,000& \text {units  } \
 \text { Actual cost of direct materials used } &\$483,570\
\end{array}$
 
A) $3,570 unfavorable.
B) $2,430 unfavorable.
C) $3,570 favorable.
D) $2,430 favorable.
E) $6,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $\begin{array}{llr}
  \text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \
 \text {  Actual direct materials used} &243,000& \text {Ibs.  } \
 \text {Actual finished units produced  } &40,000& \text {units  } \
 \text { Actual cost of direct materials used } &\$483,570\
\end{array}$
 
A) $3,570 unfavorable.
B) $2,430 unfavorable.
C) $3,570 favorable.
D) $2,430 favorable.
E) $6,000 unfavorable.

Fletcher Company Collected the Following Data Regarding Production of One