The Actual Cost of Direct Materials Is $47

question 241

Multiple Choice

The actual cost of direct materials is $47.50 per pound. The standard cost per pound is $51.75. During the current period, 7200 pounds were used in production. The standard quantity for actual units produced is 7100 pounds. How much is the direct materials price variance?

• A)$30,175 favorable
• B)$30,175 unfavorable
• C)$30,600 favorable
• D)$30,600 unfavorable