Assume the following information for Webster Company:Beginning Raw Materials Inventory (Quantity):200 itemsBudgeted Ending Raw Materials Inventory (Quantity):200 itemsBudgeted direct materials (Purchased):$7,000Standard quantity of direct materials per unit:20 itemsBudgeted production:100 unitsActual Ending Raw Materials Inventory (Quantity):175 itemsActual direct materials costs (Purchased):$7,500Actual quantity of direct materials used per unit:19 itemsActual production:150 unitsWhat is Webster’s direct materials price variance? (do not round intermediate calculations, round final answer to the nearest cent)

Direct Materials price Variance = (Actual Price x Actual Quantity Purchase) - (Standard Price x…

Answered: What is Webster’s direct materials…

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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Assume the following information for Webster Company:

Beginning Raw Materials Inventory (Quantity):	200 items
Budgeted Ending Raw Materials Inventory (Quantity):	200 items
Budgeted direct materials (Purchased):	$7,000
Standard quantity of direct materials per unit:	20 items
Budgeted production:	100 units
Actual Ending Raw Materials Inventory (Quantity):	175 items
Actual direct materials costs (Purchased):	$7,500
Actual quantity of direct materials used per unit:	19 items
Actual production:	150 units

What is Webster’s direct materials price variance? (do not round intermediate calculations, round final answer to the nearest cent)

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