A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3
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Question:
A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3 per kilogram. Last month, 1,000 kilograms of direct materials were purchased for $2,900. Also last month, 700 kilograms of direct materials were used to produce 135 units.
What was the direct materials price variance for last month?
a. $12,100 favourable
b. $100 favourable
c. $12,100 unfavourable
d. $100 unfavourable
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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