The Standard Costs and Actual Costs for Direct Materials for the Manufacture

question 172

Multiple Choice

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs
Direct materials (per completed unit) $\quad 1.04$ kilograms $@ \$ 8.75$

Actual Costs
Direct materials $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2,500 kilograms $@ \$ 8$
? The amount of direct materials price variance is:

• A) $1,875 unfavorable.
• B) $1,950 favorable.
• C) $1,875 favorable.
• D) $1,950 unfavorable.

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