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Summerlin Company budgeted 4,100 pounds of material costing $6 per pound to produce 2,000 units. The company actually used 4,600 pounds which cost $6.10 per pound to produce 2,000 units. What are the direct materials price variance? a. $3,460 unfavorable. b. $3,000 unfavorable. c. $460 unfavorable. d. $3,050 unfavorable. e. $410 unfavorable.

Summerlin Company budgeted 4,100 pounds of material costing $6 per pound to produce 2,000 units. The company actually used 4,600 pounds which cost $6.10 per pound to produce 2,000 units. What are the direct materials price variance? a. $3,460 unfavorable. b. $3,000 unfavorable. c. $460 unfavorable. d. $3,050 unfavorable. e. $410 unfavorable.

FINANCIAL ACCOUNTING
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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What are the direct materials price variance?

Summerlin Company budgeted 4,100 pounds of material costing $6 per pound to produce 2,000 units. The company actually used 4,600 pounds which cost $6.10 per pound to produce 2,000 units. What are the direct materials price variance? a. $3,460 unfavorable. b. $3,000 unfavorable. c. $460 unfavorable. d. $3,050 unfavorable. e. $410 unfavorable.
Transcribed Image Text:Summerlin Company budgeted 4,100 pounds of material costing $6 per pound to produce 2,000 units. The company actually used 4,600 pounds which cost $6.10 per pound to produce 2,000 units. What are the direct materials price variance? a. $3,460 unfavorable. b. $3,000 unfavorable. c. $460 unfavorable. d. $3,050 unfavorable. e. $410 unfavorable.
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