Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: Standard quantity of direct materials for the units manufactured (SQ) 30,000 Direct materials purchases—actual cost$63,000 Standard price per unit of direct materials (SP)$2.00 Direct material efficiency variance—favorable$4,500 All materials purchased during the month were issued to production.What was the direct materials price variance for July, rounded to the nearest dollar?

DIRECT MATERIAL PRICE VARIANCE IS THE DIFFERENCE BETWEEN THE ACTUAL AMOUNT SPENT ON DIRECT MATERIAL…

Answered: Matinna Co. maintains no inventories…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:


Standard quantity of direct materials for the units manufactured (SQ)		30,000
Direct materials purchases—actual cost	$	63,000
Standard price per unit of direct materials (SP)	$	2.00
Direct material efficiency variance—favorable	$	4,500

All materials purchased during the month were issued to production.

What was the direct materials price variance for July, rounded to the nearest dollar?

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