Myers Corporation Has the Following Data Related to Direct Materials

question 30

Multiple Choice

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

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Definitions:

Period Costs

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Financial Reporting

The communication of financial information and data about a company's operations, financial position, and cash flows to external users.

Manufacturing Overhead Cost

Indirect factory-related costs that are incurred when producing a product, such as utilities, depreciation, and maintenance.

Variable Cost Per Unit

The cost, which varies with the level of output, of producing one unit of a product.