The Standard Materials Cost to Produce 1 Unit of Product

question 199

Multiple Choice

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials price variance?

• A)$47,000 unfavorable.
• B)$47,000 favorable.
• C)$50,000 unfavorable.
• D)$50,000 favorable.
• E)$3,000 favorable.

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