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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 kilogram of direct materials were used to produce 135 units. What was the direct materials price variance for last month? O a. $12,100 favourable O b. $100 favourable Oc $12,100 unfavourable O d. $100 unfavourable

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 kilogram of direct materials were used to produce 135 units. What was the direct materials price variance for last month? O a. $12,100 favourable O b. $100 favourable Oc $12,100 unfavourable O d. $100 unfavourable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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? O a. $12,100 favourable O b. $100 favourable Oc $12,100 unfavourable O d. $100 unfavourable
Transcribed Image Text: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? O a. $12,100 favourable O b. $100 favourable Oc $12,100 unfavourable O d. $100 unfavourable
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