Question

Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,680 pounds of material, $5.00; and standard costs for 4,450 pounds of material at $6.10 per pound.

What is the direct materials price variance?

$1,403 unfavorable

$5,148 unfavorable

$5,148 favorable

$1,403 favorable

The standard costs and actual costs for direct materials for the manufacture of 2,100 actual units of product are

Standard Costs
Direct materials (per completed unit)	1,040 kilograms @$8.75
Actual Costs
Direct materials	2,100 kilograms @ $8.20

Round your final answer to the nearest dollar.

The amount of direct materials price variance is

$1,155 favorable

$572 unfavorable

$1,155 unfavorable

$572 favorable

Answer 1

Materials Price Variance = (SP-AP) * AQ = (6.10 - 5)*4,680 = 5178 Favourable Option C

Materials Price Variance = (SP-AP) * AQ = (8.75-8.20)*2,100 = 1155 Favourable Option A