Casivant Corporation Makes a Product That Uses a Material with the Following

question 227

Multiple Choice

Casivant Corporation makes a product that uses a material with the following direct material standards: The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for November is:

• A) $5,548 U
• B) $6,160 U
• C) $6,160 F
• D) $5,548 F

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