The actual cost of direct materials is $22.75 per kilogram. The standard cost is $21.50 per kilogram. During production, 5,400 kilograms were used. The standard quantity for the output is 5,200 kilograms. How much is the direct materials price variance?

The actual cost of direct materials is $22.75 per kilogram. The standard cost is $21.50 per kilogram. During production, 5,400 kilograms were used. The standard quantity for the output is 5,200 kilograms. How much is the direct materials price variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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Please explain the solution to this general accounting problem with accurate principles.

The actual cost of direct materials is $22.75 per kilogram. The
standard cost is $21.50 per kilogram. During production, 5,400
kilograms were used. The standard quantity for the output is 5,200
kilograms.
How much is the direct materials price variance?

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