What are the direct materials price variance Summerlin Company budgeted 4,100 pounds ofmaterial costing $7.60 per pound to produce 2,000units. The company actually used 5,350 poundswhich cost $8.25 per pound to produce 2,000 units.What are the direct materials price variance?

Concept of Standard PriceThe standard price refers to the predetermined or budgeted cost of direct…

Answered: Summerlin Company budgeted 4,100 pounds…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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Summerlin Company budgeted 4,100 pounds of material costing $7.60 per pound to produce 2,000 units. The company actually used 5,350 pounds which cost $8.25 per pound to produce 2,000 units. What are the direct materials price variance?