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A Company Uses the Following Standard Costs to Produce a Single

question 45

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A company uses the following standard costs to produce a single unit of output. A company uses the following standard costs to produce a single unit of output.   During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials price variance for the month was: A)  $6,000 unfavorable B)  $1,800 favorable C)  $1,000 favorable D)  $5,800 unfavorable E)  $1,800 unfavorable During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials price variance for the month was:


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