Orlando Manufacturing budgeted 5,000 pounds of material costing $7 per pound to produce 2,500 units. The company actually used 5,300 pounds which cost $7.20 per pound to produce 2,500 units. What is the direct materials price variance? Options: a. $1,060 unfavorable b. $1,500 unfavorable c. $1,700 unfavorable d. $2,120 unfavorable e. $1,250 unfavorable
Orlando Manufacturing budgeted 5,000 pounds of material costing $7 per pound to produce 2,500 units. The company actually used 5,300 pounds which cost $7.20 per pound to produce 2,500 units. What is the direct materials price variance? Options: a. $1,060 unfavorable b. $1,500 unfavorable c. $1,700 unfavorable d. $2,120 unfavorable e. $1,250 unfavorable
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 8P: Carlo Lee Corp. has established the following standard cost per unit:
Although 10,000 units were...
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What is the direct material price variance ? General accounting question

Transcribed Image Text:Orlando Manufacturing budgeted 5,000 pounds of material costing $7 per pound to
produce 2,500 units. The company actually used 5,300 pounds which cost $7.20 per
pound to produce 2,500 units.
What is the direct materials price variance?
Options:
a. $1,060 unfavorable
b. $1,500 unfavorable
c. $1,700 unfavorable
d. $2,120 unfavorable
e. $1,250 unfavorable
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