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20 June, 03:13

Fitness Bands Corporation gathered the following information: Standard Total Cost Actual Total Cost Direct materials Standard: 2,400 pints at $ 3.50 /pint $8,400 Actual: 2,600 pints at $ 6.00 /pint $15,600 What is the direct materials price variance? A. $2,500 unfavorable B. $1,750 unfavorable C. $1,750 favorable D. $2,500 favorable

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  1. 20 June, 03:22
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    Nono of the answer is correct.

    Explanation:

    Giving the following information:

    Standard Cost: 2,400 pints at $ 3.50 /pint $8,400

    Actual: 2,600 pints at $ 6.00 /pint $15,600

    Direct material price variance = (standard price - actual price) * actual quantity

    Direct material price variance = (3.5 - 6) * 2,600 = 6,500 unfavorable
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