Answered: pounds, which they used to produce…

pounds, which they used to produce 4,700 units. What is the direct material price variance? $3,500 unfavorable $10,000 unfavorable $2,600 favorable $12,600 unfavorable

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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Question

A Company has a material standard of 1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, A Company paid $127,250 for 4,950 pounds, which they used to produce 4,700 units. What is the direct material price variance?

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