d. $2,430 Favorable 6. Followings are Gallup Corporation information for a produ

Question

d. $2,430 Favorable 6. Followings are Gallup Corporation information for a product Standard quantity per unit of output = 7.3 grams Standard Price- $6.00 per gram. Total production in January 3400 units; Direct material usage- 24,870 grams During the month the company purchased 27,400 grams of the direct material at $6.10 per The direct materials purchases gram variance is computed when the materials are purchased The materials price variance for January is: a. $2,482 Favorable b. $2,740 Unfavorable c. $2,482 Unfavorable d. $2,740 Favorable Please S HOW YOUR FULL CALCULATION!!!

Explanation / Answer

Answer is B

Direct Material Price Variance = (Standard Rate - Actual Rate) x Actual Quantity Purchased                                                              = ( 6.00 - 6.10) x 27400                                                              = 2740 Unfav

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.