Calculate the Direct Materials Price variance using the above information:
A) $1,795.50 Favorable
B) $378.00 Favorable
C) $4,512.50 Unfavorable
D) $378.00 Unfavorable

Name: Calculate the Direct Materials Price variance using the above information: A) $1,795.50 Favorable B) $378.00 Favorable C) $4,512.50 Unfavorable D) $378.00 Unfavorable
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Question

Calculate the Direct Materials Price variance using the above information:
A) $1,795.50 Favorable 
B) $378.00 Favorable 
C) $4,512.50 Unfavorable 
D) $378.00 Unfavorable

Quizplus · Accepted Answer

Direct Materials Price Variance = (AP - SP) x AQ
= ($11.70 - $10.00) x 3,750 lbs
= $6,375 unfavorable 
Therefore, the correct answer is C, $4,512.50 unfavorable.

Calculate the Direct Materials Price Variance Using the Above Information