The standard direct material cost per unit for a product is calculated as follows: 10.5 liters at $2.50 per liter. Last month the actual price paid for 12,000 liters of material used was 4% above standard and the direct material usage variance was $1,815 favorable. No inventory of material is held.   Requirements 1- What was the unfavorable direct material price variance for last month?  2-  What was the actual production last month (in units)?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The standard direct material cost per unit for a product is calculated as follows: 10.5 liters at $2.50 per liter. Last month the actual price paid for 12,000 liters of material used was 4% above standard and the direct material usage variance was $1,815 favorable. No inventory of material is held.

 

Requirements

1- What was the unfavorable direct material price variance for last month? 

2-  What was the actual production last month (in units)?

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