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The following company information is available: Direct materials used for production 41.200 gallons Standard quantity for units produced 39,000 gallons Standard cost per gallon of direct material $5.80 Actual cost per gallon of direct material $6.40 The direct materials price variance is: a. $24,720 unfavorable. b. $34,500 unfavorable. c. $34,500 favorable. d. $9,850 unfavorable. e. $2,900 unfavorable.

The following company information is available: Direct materials used for production 41.200 gallons Standard quantity for units produced 39,000 gallons Standard cost per gallon of direct material $5.80 Actual cost per gallon of direct material $6.40 The direct materials price variance is: a. $24,720 unfavorable. b. $34,500 unfavorable. c. $34,500 favorable. d. $9,850 unfavorable. e. $2,900 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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The direct materials price variance is?

The following company information is available: Direct materials used for production 41.200 gallons Standard quantity for units produced 39,000 gallons Standard cost per gallon of direct material $5.80 Actual cost per gallon of direct material $6.40 The direct materials price variance is: a. $24,720 unfavorable. b. $34,500 unfavorable. c. $34,500 favorable. d. $9,850 unfavorable. e. $2,900 unfavorable.
Transcribed Image Text:The following company information is available: Direct materials used for production 41.200 gallons Standard quantity for units produced 39,000 gallons Standard cost per gallon of direct material $5.80 Actual cost per gallon of direct material $6.40 The direct materials price variance is: a. $24,720 unfavorable. b. $34,500 unfavorable. c. $34,500 favorable. d. $9,850 unfavorable. e. $2,900 unfavorable.
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