The Steinberg Company had the following direct material costs for the manufacture of product T in March:

Actual purchase price per pound of direct materials                                $8.90

Standard Direct Materials Allowed for Units of Product T Produced    3500 lbs.

Decrease in inventory of direct materials                                                240 pounds

Direct materials used in production .                                                            3700 lbs

Standard price per pound of material                                                              $8.65

1. What was Steinberg's direct materials purchase price variance and its direct materials use variance in March? Indicate whether each variation was F (favorable) or U (unfavorable).

2. Prepare the appropriate journal entries for March.

Answer rating: 100% (QA)

To calculate the direct materials purchase price variance and direct materials use variance we can u... View the full answer