Question

A company provided the following direct materials cost information. Compute the direct materials price variance. $1,526,400 S
Ο $1,526,400 Favorable. Ο $1,526,400 Unfovorable. Ο Ο $42.150 Unfavorable. Ο SA2,150 Favorable, Ο $42,400 Favorable.
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Answer #1

Answer : $ 42150 Unfavorable

Direct Material Price Variance = ( Standard Price - Actual Price) * Actual quantity.

Direct Material Price Variance = ( $ 3.6 - $ 3.7 ) * 421500 = $ 42150 Unfavorable

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