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The actual cost of materials is $48.60 per pound. The standard cost is $50.00 per pound. During production, 7,200 pounds were used. The standard quantity for the output is 6,800 pounds. How much is the direct materials price variance?

The actual cost of materials is $48.60 per pound. The standard cost is $50.00 per pound. During production, 7,200 pounds were used. The standard quantity for the output is 6,800 pounds. How much is the direct materials price variance?

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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The actual cost of materials is $48.60 per pound. The standard cost is $50.00 per pound. During production, 7,200 pounds were used. The standard quantity for the output is 6,800 pounds. How much is the direct materials price variance?
Transcribed Image Text:The actual cost of materials is $48.60 per pound. The standard cost is $50.00 per pound. During production, 7,200 pounds were used. The standard quantity for the output is 6,800 pounds. How much is the direct materials price variance?
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