Asked by
Joshua Nerio
on Dec 16, 2024Verified
Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials price variance?
A) $3,000 favorable
B) $3,000 unfavorable
C) $2,880 favorable
D) $2,880 unfavorable
Direct Materials Price Variance
The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.
Actual Costs
The real expenses incurred for goods, services, or other operational activities during a specific period of time.
Standard Costs
The practice of assigning an expected cost to products, with the aim of assessing performance by comparing these costs to actual costs.
- Calculate and clarify the deviations in the cost and quantity of direct materials.
Verified Answer
VO
Learning Objectives
- Calculate and clarify the deviations in the cost and quantity of direct materials.