Atlantic Manufacturing reports the following data for direct materials: The actual cost of direct materials is $48.25 per pound, and the standard cost per pound is $50.75. During the current period, 7,200 pounds were used in production, while the standard quantity for actual units produced is 6,800 pounds. How much is the direct materials price variance? a. $18,000 unfavorable b. $18,000 favorable. c. $18,600 favorable d. $18,600 unfavorable

Atlantic Manufacturing reports the following data for direct materials: The actual cost of direct materials is $48.25 per pound, and the standard cost per pound is $50.75. During the current period, 7,200 pounds were used in production, while the standard quantity for actual units produced is 6,800 pounds. How much is the direct materials price variance? a. $18,000 unfavorable b. $18,000 favorable. c. $18,600 favorable d. $18,600 unfavorable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 4CE: Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual...

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