Degregorio Corporation makes a product that uses a material with the following direct material standards: The company produced 5,600 units in November using 21,750 kilos of the material. During the month, the company purchased 24,800 kilos of the direct material at a total cost of $168,640. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:
A)$4,256 F
B)$4,256 U
C)$4,960 F
D)$4,960 U

Question

Degregorio Corporation makes a product that uses a material with the following direct material standards:  The company produced 5,600 units in November using 21,750 kilos of the material. During the month, the company purchased 24,800 kilos of the direct material at a total cost of $168,640. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:
A)$4,256 F 
B)$4,256 U 
C)$4,960 F 
D)$4,960 U

Quizplus · Accepted Answer

The Answer of Degregorio Corporation makes a product that uses a material with the following direct material standards:  The company produced 5,600 units in November using 21,750 kilos of the material. During the month, the company purchased 24,800 kilos of the direct material at a total cost of $168,640. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:
A)$4,256 F 
B)$4,256 U 
C)$4,960 F 
D)$4,960 U

Degregorio Corporation Makes a Product That Uses a Material with the Following