The following data relate to direct materials costs for November:

-What is the direct materials price variance?
A)$2,250 unfavorable
B)$2,250 favorable
C)$2,300 unfavorable
D)$1,700 unfavorable

Question

The following data relate to direct materials costs for November:
 
-What is the direct materials price variance?
A)$2,250 unfavorable 
B)$2,250 favorable 
C)$2,300 unfavorable 
D)$1,700 unfavorable

Quizplus · Accepted Answer

The direct materials price variance is unfavorable when the actual price paid for materials is higher than the standard price. In this case, the actual price paid was $2,500 and the standard price was $2,250, so the variance is $2,500 - $2,250 = $250 unfavorable.

The Following Data Relate to Direct Materials Costs for November