Kyle, Inc. has collected the following data on one of its products. The direct materials price variance is:
A) $13,750 unfavorable.
B) $16,250 unfavorable.
C) $16,250 favorable.
D) $30,000 unfavorable.
E) $33,000 favorable.

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as the difference between the actual cost and the standard cost for the actual quantity of materials used. If the actual cost is less than the standard cost, the variance is favorable. Without specific data provided in the question, the correct choice cannot be determined based on calculations. However, based on the options given, the correct answer is identified as option C, which indicates a favorable variance of $16,250.

Kyle, Inc Has Collected the Following Data on One of Its