Asked Dec 16, 2019

The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units of product are as follows:

Standard Costs
Direct materials 1,040 kilograms at $8.98

Actual Costs
Direct materials 2,000 kilograms at $8.40

The direct materials price variance is

a.$1,160 unfavorable
b.$603 favorable
c.$1,160 favorable
d.$603 unfavorable

Expert Answer

Step 1

Formula to calcualte Direct material price variance:

Direct material price vari...

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