Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. Direct materials standard (6 pounds @ $2/pound) Actual direct materials used $ 12 per finished unit 297,450 pounds 49,000 units Actual finished units produced Actual cost of direct materials used $ 592,380 Multiple Choice $2,520 favorable. $2,520 unfavorable, $4,380 favorable. $4,380 unfavorable.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance.
Direct materials standard (6 pounds @ $2/pound)
Actual direct materials used
$ 12 per finished unit
297,450 pounds
49,000 units
Actual finished units produced
Actual cost of direct materials used
$ 592,380
Multiple Choice
$2,520 favorable.
$2,520 unfavorable,
$4,380 favorable.
$4,380 unfavorable.
Transcribed Image Text:Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. Direct materials standard (6 pounds @ $2/pound) Actual direct materials used $ 12 per finished unit 297,450 pounds 49,000 units Actual finished units produced Actual cost of direct materials used $ 592,380 Multiple Choice $2,520 favorable. $2,520 unfavorable, $4,380 favorable. $4,380 unfavorable.
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