In June, Pharoah Manufacturing purchased 6,600 gallons of blue dye used to produce stone-washed denim clothing. The price per gallon was $1.25 and the company used 6,000 gallons of the dye during the month. The standard price for the dye is $1.28. What is the materials price variance for Pharoah for June?- O $180 favorable- O $198 favorable- O $198 unfavorable- O $180 unfavorable

Answer : Material price variance = (Standard price -Actual price) * Actual units

Answered: was $1.25 and the company used E als…

Business

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was $1.25 and the company used E als price variance for Pharoah for $180 favorable

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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Question

In June, Pharoah Manufacturing purchased 6,600 gallons of blue dye used to produce stone-washed denim clothing. The price per gallon was $1.25 and the company used 6,000 gallons of the dye during the month. The standard price for the dye is $1.28. What is the materials price variance for Pharoah for June?

- O $180 favorable
- O $198 favorable
- O $198 unfavorable
- O $180 unfavorable

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