Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity: 2.4 kilos per unit Standard price: $6.00 per kilo The company produced 6,600 units in November using 16,180 kilos of the material. During the month, the company purchased 18,220 kilos of direct material at a total cost of $105,676. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is: a. $2,940 F b. $2,940 U c. $3,644 F d. $3,644 U

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Chapter8: Standard Costs And Variances
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Degregorio Corporation makes a product that uses a material with
the following direct material standards:
Standard quantity: 2.4 kilos per unit
Standard price: $6.00 per kilo
The company produced 6,600 units in November using 16,180
kilos of the material. During the month, the company purchased
18,220 kilos of direct material at a total cost of $105,676. The
direct materials purchases variance is computed when the
materials are purchased. The materials price variance for
November is:
a. $2,940 F
b. $2,940 U
c. $3,644 F
d. $3,644 U
Transcribed Image Text:Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity: 2.4 kilos per unit Standard price: $6.00 per kilo The company produced 6,600 units in November using 16,180 kilos of the material. During the month, the company purchased 18,220 kilos of direct material at a total cost of $105,676. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is: a. $2,940 F b. $2,940 U c. $3,644 F d. $3,644 U
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