What are the direct materials price variance? Summerlin Company budgeted 4,100pounds of material costing $7.60 perpound to produce 2,000 units. Thecompany actually used 5,350 poundswhich cost $8.25 per pound to produce2,000 units.What are the direct materials pricevariance?

Step 1: Formula Direct materials price variance = (Actual price - Standard price ) x Actual quantity…

Answered: Summerlin Company budgeted 4,100 pounds…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

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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?