Exeter Has a Materials Standard of 1 Pound Per Unit

question 44

Multiple Choice

Exeter has a materials standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which it used to produce 2,350 units.What is the direct materials price variance?

• A)$1,750 unfavorable
• B)$1,300 favorable
• C)$6,300 unfavorable
• D)$5,000 unfavorable

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