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The following company information is available for January: Direct materials use

ID: 2375494 • Letter: T

Question

The following company information is available for January:

  Direct materials used   2,600 feet @$52 per foot   Standard costs for direct materials for January production   2,700 feet @ $50 per foot
The direct material price variance is: $8,200 unfavorable. $4,950 favorable. $6,950 favorable. $5,200 unfavorable. $5,300 favorable. $8,200 unfavorable. $4,950 favorable. $6,950 favorable. $5,200 unfavorable. $5,300 favorable.   Direct materials used   2,600 feet @$52 per foot   Standard costs for direct materials for January production   2,700 feet @ $50 per foot

Explanation / Answer

direct materials price variance = 2600 * (52 - 50) = 5200 unfavourabel

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