Blossom Industries uses a standard cost system in which direct material is carried at standard cost....

Transcribed Image Text:

Blossom Industries uses a standard cost system in which direct material is carried at standard cost. Blossom has established the following standards for one unit of product: standard quantity of 9 pounds, standard price $1.80 per pound. During January, Blossom purchased 171,500 pounds of direct material at a cost of $327,000 and used 154,000 pounds in production of 21,000 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $ 18865 Unfavorable Blossom Industries uses a standard cost system in which direct material is carried at standard cost. Blossom has established the following standards for one unit of product: standard quantity of 9 pounds, standard price $1.80 per pound. During January, Blossom purchased 171,500 pounds of direct material at a cost of $327,000 and used 154,000 pounds in production of 21,000 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $ 18865 Unfavorable