Cultco Company Ltd Has Set the Following Direct Material Standards

question 38

Multiple Choice

Cultco Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg; $7.50 per unit. During April, actual direct material purchased and used amounted to 8000 kg at a cost of $3.10 per kg. Actual production amounted to 3000 units. Determine Cultco's direct material price variance.

• A) $1500 (U)
• B) $800 (U)
• C) $750 (U)
• D) $500 (U)